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Local Government Finance

January 5, 2010

Question written on 05/01/2010

To ask the Secretary of State for for Communities and Local Government (1) how much (a) in total and (b) per capita is planned to be provided through the (i) provisional local authority formula grant and (ii) adjusted provisional local authority formula grant in (A) England, (B) the South West Region, (C) each local authority in the South West Region in financial year (1) 2009-10 and (2) 2010-11;(2) how much (a) in total and (b) per capita was provided through the (i) local authority formula grant and (ii) adjusted local authority formula grant for (A) England, (B) the South West Region and (C) each local authority in the South West Region in each year from 1997-98 to 2008-09. .

Answered by Barbara Follett

A table showing the year-on-year change on a like-for-like basis for all local authorities for the period 1998-99 to 2010-11 has been placed in the Library. The Department only holds data on adjusted formula grant from 1997-98. This is because it only became necessary to make these adjustments when guarantees were introduced that ensured that no authority could lose grant, year-on-year, on a like-for-like basis. Consequently it is not possible to provide the increases on a like-for-like basis for 1997-98. The previous year’s formula grant is adjusted for changes in function and funding to enable a like-for-like comparison. This is the only purpose of the adjustment: the local authority’s grant for the previous year is not changed. Formula Grant comprises Revenue Support Grant, redistributed business rates, principal formula Police Grant, SSA Reduction Grant (SSA Review), SSA Reduction Grant (Police Funding Review) and Central Support Protection Grant where appropriate. Before 2006-07, support for schools was paid through formula grant. In 2006-07 funding for schools was transferred to the Dedicated Schools Grant. That is why all authorities which have responsibility for schools will see a large decrease in their grant between 2005-06 and 2006-07 on an absolute (non like-for-like) basis. Before 2006-07, the main measure of population used in the Local Government Finance Settlement was the sub-national estimates. From 2006-07 onwards, sub-national population projections were used instead. The per head figures have been calculated using the main measure of population used for each settlement.