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Local Government Finance

Volume 400: debated on Monday 24 February 2003

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To ask the Secretary of State for Northern Ireland what consultation took place with local government representatives on the implications of the new formulae for distributing financial support to local councils through the general grant. [98366]

Consultation on proposals for a new formula for the distribution of the resources element of general grant to district councils took place with a wide range of interests including local government representatives between 1 September and 13 November 2000, to consider initial suggestions, and, subsequently, on more detailed proposals, between 21 September and 17 December 2001. This was followed by consultation on the draft primary legislation between 10 and 23 May 2002 and between 19 September and 21 October 2002 on the draft regulations which give effect to the new formula.During consultation on the proposals the Department of the Environment arranged a workshop for members of the Association of Local Government Finance Officers. Presentations were also made to the Northern Ireland Assembly's Environment Committee; individual MLAs; the National Association of Councillors, and to individual district councils, as requested. Members of the Department of the Environment's Finance Working Group, which includes representatives of the Society of Local Authority Chief Executives, the Association of Local Government Finance Officers and Local Government Audit, were regularly informed about developments relating to the new formula.

To ask the Secretary of State for Northern Ireland when the level of the reduction to the general grant was notified to the affected local councils. [98367]

All 26 district councils were advised on 23 December 2002 of their allocations of general grant for 2003–04 under the new statutory formula for calculating the resources element of general grant. The new formula applies from 1 April 2003.

To ask the Secretary of State for Northern Ireland what the change of the general grant proposed for 2003–04 is as a proportion of the budget of the councils affected for 2002–03. [98368]

General grant has two elements—a resources element and a derating element. The proposed changes in the resources element of general grant for 2000–04 are expressed as a percentage of district councils' estimated expenditure for 2002–03, in the table. Complete information on the proposed changes in the derating element in 2003–04 will not be available until the end of March 2003.

District councilPercentage change from 2002–03 to 2003–04
Antrim Borough CouncilNo grant
Ards Borough Council-0.43
Armagh City and District Council-4.41
Ballymena Borough CouncilNo grant
Ballymoney Borough Council+0.40
Banbridge District Council-1.53
Belfast City CouncilNo grant
Carrickfergus Borough Council-11.08
Castlereagh Borough CouncilNo grant
Coleraine Borough CouncilNo grant
Cookstown District Council+7.76
Craigavon Borough Council-0.45
Derry City Council+2.90
Down District Council-3.49
Dungannon and South Tyrone Borough Council+5.90
Fermanagh District Council+9.30
District councilPercentage change from 2002–03 to 2003–04
Lame Borough Council+2.48
Limavady Borough Council+5.22
Lisburn City CouncilNo grant
Magherafelt District Council+5.33
Moyle District Council+1.43
Newry and Mourne District Council-7.45
Newtownabbey Borough CouncilNo grant
North Down Borough CouncilNo grant
Omagh District Council+7.00
Strabane District Council+2.81

To ask the Secretary of State for Northern Ireland whether he will be introducing transitional arrangements for the changes to the general grant. [98369]

Yes. I intend to make available financial support to assist with the transition to the new statutory formula for calculating the resources element of general grant amounting to some £3 million over the next two financial years.