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Local Government Finance (Worcester)

Volume 405: debated on Tuesday 13 May 2003

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To ask the Deputy Prime Minister what percentage increases in local government grant were awarded to Worcester City Council in each year since 1992–93. [112989]

There are two funding streams to help support revenue funding by local authorities. These are Revenue Support Grant (RSG) and redistributed non-domestic rates (NNDR). It is important to look at the total of these funding streams (formula grant) in order to compare support from central government year-on-year, since the level of non-domestic. rates can vary year-on-year.Since 1997 there have been many changes in local government functions and funding. To enable a like-for-like comparison between years, we calculate adjusted grants. The percentage change figures have been calculated on the basis of these like-for-like comparisons.However, until the introduction of Central Support Protection Grant in 1999–2000, there was no need to calculate grant on a like-for-like basis. For this reason grant comparisons in the years between 1992–93 and 1998–99 do not make logical sense and are not available. For information, the unadjusted grant amounts for these years are still shown.The following table shows the amount of formula grant (which consists of RSG, NNDR and SSA Reduction Grant (where appropriate)) received by Worcester City Council during the period. The table also shows the percentage year-on-year changes in formula grant on a like-for-like basis where possible.The large decrease in formula grant between 1992–93 and 1993–94 represents a significant change in the way formula grant was paid. Up until 1992–93 all formula grant was paid to the billing authority and then paid by the billing authority to other tiers of authority. In subsequent years each authorities grant has been paid directly and hence billing authorities receive less grant.

YearFormula grant (i.e. RSG+NNDR) (£ millions)Increase in formula grant, (percentages)
1992–9340,482n/a
1993–945,518n/a
1994–956,065n/a
1995–966.037n/a
1996–976.098n/a
1997–985.981n/a
YearFormula grant (i.e. RSG+NNDR) (£ millions)Increase in formula grant, (percentages)
1998–996.388n/a
1999–20006,4771.4
2000–016.7233.8
2000–0116.772
2001–026.9262.3
2001–0216.832
2002–037.0883.7
2002–0316.928
2003–;047.1473.2
1Adjusted

To ask the Deputy Prime Minister if he will make it his policy not to apply resource equalisation to the budget of Worcestershire County Council in future financial years; and if he will make a statement. [1112662]

Resource equalisation has been part of the revenue funding system for many years, where it serves an important purpose in helping to ensure a fair and equitable distribution of central Government support between local authorities. It is the Government's intention that an allowance for the differing ability of local authorities to raise income locally from council taxpayers should remain an integral part of the grant distribution system for all authorities.