Local authorities are responsible for decisions on local pay issues, including equal pay, and they are expected to manage them in an affordable manner. Most central funding is provided through general grant and there has been no specific grant earmarked for equal pay. Central Government funding for local government has increased by 39 per cent. in real terms since 1997.
Approvals for capitalisation directions for equal pay, which permit authorities to borrow or use capital receipts to fund back-pay, are set out as follows:
Funds (£) 2003-04 4,500,000 2004-05 41,048,635 2005-06 50,089,433 2006-07 160,501,817
Following representations made by the Local Government Association and others, we have introduced a quicker process for equal pay capitalisation this year, and are considering requests in the current financial year.