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Newcastle City Council Finance

Volume 454: debated on Monday 11 December 2006

To ask the Secretary of State for Communities and Local Government what population figures for the City of Newcastle upon Tyne were used to calculate Newcastle City Council’s Revenue Support Grant for (a) 2003-04, (b) 2004-05 and (c) 2005-06; and what population projections will be used for the grant in each of the next three financial years. (107763)

Mid-year population estimates published by the Office for National Statistics (ONS) were used in the calculation of formula grant in 2003-04 to 2005-06. The revised mid-2001 and mid-2002 population estimates were incorporated through amending reports. The following table shows the population figures for the City of Newcastle upon Tyne that were used:

Settlement year2003-042004-052005-06

Population data used

1Mid-2001

1Mid-2002

1Mid-2003

Resident population

266,241

266,012

266,589

Population of working age

161,534

162,318

163,934

Resident population under 18 years of age

55,565

55,086

54,477

Resident population aged3 to 15

40,868

40,154

39,350

Resident population aged 13 to 19

25,373

25,807

25,699

Resident population aged 18 to 64

167,988

168,543

169,779

Resident population aged 65 and over

42,688

42,383

42,333

Resident population aged 75 to 84

15,261

15,373

15,395

Resident population aged 85 and over

5,018

4,927

4,883

1 Estimates

Note:

Unrounded population figures are used in settlement calculations, though ONS publish rounded population data.

Source:

ONS

Following consultation, the Government adopted the policy of multi-year formula grant settlements from 2006-07. The use of population projections as the key measure of population was a part of this change. The first multi-year formula grant settlement under that policy concerns the financial years 2006-07 and 2007-08.

For the 2006-07 settlement, the best available population projections were the ONS 2003-based sub-national population projections. From this dataset, the projected population for 2006 were used.

As 2007-08 is the second year of a multi-year settlement and was calculated at the same time as the 2006-07 settlement, the provisional 2007-08 settlement also uses the 2003-based sub-national population projections. From this dataset, the projected population for 2007 are used. The Government are currently consulting on the 2007-08 provisional settlement and will take into account all relevant representations made during the consultation period before making the final settlement.

For the 2008-09 to 2010-11 settlements, consistent with the Government’s policy on multi-year formula grant settlements, we intend to use the ONS’s 2004-based sub-national population projections. We intend to use the projected population for 2008, 2009 and 2010 in each of the respective settlements. The Government will consult fully with local authorities before making these settlements.