Mr Gummer said: 'I propose that total standard spending - TSS - for 1994-95 should be £42.664 billion for England, £1.496bn above this year's figure.
'This total includes the new transitional community care special grant of £736 million announced by my hon friend the Minister for Health on 29 October.
'After adjusting for changes in local authority functions and excluding community care, TSS in 1994-95 represents an increase of 2.3% over this year.
'I also propose that the non domestic rate poundage for 1994-95 in England should rise by 1.7% to 42.3p, reflecting the annual increase in the retail prices index to September. This will ensure that the benefit of the government's success in tackling inflation will once again be passed on in full to businesses.
'I propose to set the distributable amount of non domestic rates at £10.685bn. I propose that the total of revenue support grant should be £18.497bn. Specific and special grants within AEF will amount to £5.131bn.