§ Mr. Tebbit
asked the Secretary of State for the Environment if he will make a statement on the results of his review of the contributions by development corporations towards new town amenities.
§ Mr. Channon
Yes. I have informed the chairmen of the new town development corporations that I have decided to improve the capacity of English new town development corporations to contribute towards amenities. The main responsibility in this field must, of course, remain with the appropriate local authorities; but, as the basis of corporations' present monetary quotas for approved amenity projects has not been changed since 1963, these need to be revised in the light of more recent price levels and developing standards of amenity provision.
Under the revised formula, in a new town starting tomorrow the corporation 2W would be able to plan on an expenditure towards major amenities in the town of £11 per head of the incoming population which the new development would attract, instead of the old £4 per head, but to cover a somewhat wider range of provisions.
In the existing new towns the new formula will be abated to allow for expenditure already incurred under the old formula and to suit the current phase of development. The effect of the new formula will be to increase the quotas in the various English new towns by amounts varying between less than £100,000 in the older ones and over £1 million in the largest new ones.
The use of these new quotas will still have to be considered alongside other priorities within the total provision for new towns' finance. Development corporations will, however, be able to make their forward plans on the basis of the updated ceiling figures now available.
My right hon. Friend the Secretary of State for Scotland and my right hon. and learned Friend the Secretary of State for Wales are making similar arrangements in respect of development corporations for new towns in Scotland and Wales.