To ask the Secretary of State for Communities and Local Government (1) what assessment her Department has made of the underlying rate of inflation of local authorities’ cost bases, broken down by cost base; and if she will make a statement; (114464)

In setting the overall level of Government grant support for local authority revenue spending in 2007-08, we looked carefully with local government at the factors which increased costs in that year and the extent to which those pressures could be mitigated. The overall increase in grant of £3.1 billion or 4.9 per cent. provides sufficient resources to enable authorities to deliver effective services without the need to impose excessive council tax increases. The distribution of formula and specific grants between authorities reflects the circumstances relevant to authorities. Consultation on our proposals for the funding of local authority revenue spending finished on 5 January. We are currently considering carefully all representations.