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Local Government Finance

Volume 457: debated on Thursday 8 March 2007

To ask the Secretary of State for Communities and Local Government what criteria she used in the allocation of capitalisation permissions to local authorities. (122566)

The criteria used in the allocation of capitalisation directions to local authorities are available on the Communities and Local Government website at:

http://www.local.communities.gov.uk/finance/capital/capdirsum.htm

Successful applications for capitalisation in 2006-07 were approved at 57.19 per cent. of the amount applied for. This took into account the Secretary of State’s consideration of the effect on the national economy of granting capitalisation directions to local authorities in England for expenditure incurred in the financial year that began on 1 April 2006. The method chosen was considered to be simple, transparent and fair to all authorities. The only exceptions to this were to applications from two authorities where the Government have used its intervention or engagement powers, and whose applications were agreed earlier in the year as part of a wide ranging package of measures aimed at rebuilding the capacity of the authorities to deliver effective services. We are currently discussing a package of sector-led support to help drive forward improvement in Stoke.

To ask the Secretary of State for Communities and Local Government what the average value was of grants awarded to (a) unitary and (b) county councils in England in addition to their local government financial settlement in each of the last five years. (126127)

The information requested is tabled as follows:

Average value of specific grants inside aggregate external finance

£ million

Unitary authorities

County councils

2001-02

18

59

2002-03

25

80

2003-04

37

97

2004-05

39

109

2005-06

42

114

Source:

Communities and Local Government Revenue Outturn returns.

The figures exclude grants outside aggregate external finance (i.e. where funding is not for an authority’s core services, but is passed to a third party; for example, as in the case of mandatory student awards), capital grants, funding for local authorities’ housing management responsibilities and those grant programmes (such as European funding) where authorities are simply one of the recipients of funding paid towards an area.