§ Mr. Bowis
To ask the Secretary of State for Education and Science what decision he has taken on the application from the Inner London education authority for re-determination of the expenditure level for 1988–89 which he set in July; and what maximum he proposes to prescribe for the Inner London education authority's precept in that year.
§ Mr. Kenneth Baker
Having considered the Inner London education authority's application, I have decided to re-determine the expenditure level for 1988–89 at £970 million, £15 million higher than the level I set in July. The addition is specifically to assist the authority to meet the one-off costs of making the substantial reduction in its spending which is urgently needed. I have therefore, following consultation with the authority, imposed a requirement that the additional £15 million should be used only for the purpose of meeting obligations to staff who leave the authority by reason of redundancy or in the effective discharge or efficient exercise of the authority's functions. I have today notified the authority of these decisions. I have also notified it of my proposal to prescribe a maximum precept for 1988–89 of 80.56p, which would on the latest information available enable the authority to raise £970 million. The proposed precept maximum is 0.8p more than the current year's precept, an increase of 1 per cent. I have given the authority until 12 January to inform me whether it accepts the proposal.