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Local Authority Finance

Volume 405: debated on Wednesday 14 May 2003

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To ask the Deputy Prime Minister what plans he has for further changes to the formula used to distribute Government grant to English local authorities. [112949]

Following the review of the grant distribution formula which took effect this year, we have no plans to change any of the Formula Spending Share formulae until at least 2006–07, other than to reflect changes of function or financing.This will give local authorities greater certainty about future funding.


To ask the Deputy Prime Minister if he will make a statement on budget allocations to local authorities. [112953]

In terms of formula grant, the Office of the Deputy Prime Minister was able to allocate an extra £2.4 billion or 5.9 per cent. to authorities for 2003–04, with each authority receiving more than inflation for the first time ever.Including special grants, total funding to all English authorities increased by some £3.8 billion, or 8.0 per cent.