§ Mr. Wheeler
asked the Secretary of State for the Environment if he will set out how the Greater London Council can recover any rate support grant lost.
§ Mr. King
By reducing its expenditure. On the present schedule for each £1 per head of population by which the GLC reduces its expenditure it will receive an extra £3.9 million in grant until it reduces expenditure to threshold level. Below that level it will receive an extra £1.8 million for each £1 per head by which it reduces expenditure. Conversely for each £1 per head by which it increases its expenditure it will lose £3.9 million in grant. Under the arrangements for grant reduction which my right hon. Friend announced yesterday, these figures would increase, so that the benefit in grant terms of reducing expenditure or the cost of increasing expenditure will increase further.