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Local Government Finance

Volume 469: debated on Monday 10 December 2007

To ask the Secretary of State for Communities and Local Government what the real terms percentage change in Government funding for local authorities, excluding education spending, was in each year since 1997-98. (171628)

It is not possible to provide a figure for the amount of Government funding which has been provided for non-education expenditure because a significant proportion of expenditure was funded by Revenue Support Grant and redistributed non-domestic rates. These are not hypothecated to a particular service, and authorities are able to decide on their own spending priorities.

To ask the Secretary of State for Communities and Local Government whether revenue raised from the local authority business growth incentive scheme is ring-fenced. (171712)

The Local Authority Business Growth Incentives scheme is designed to reward local authorities for increasing their business rateable value base by paying grant to authorities where business growth exceeds a certain level. Revenues under the scheme are not ring-fenced in any way.

The Government have published an issues paper on possible reforms to the scheme:

http://www.communities.gov.uk/publications/localgovernment/labgischemereforms

This seeks views from respondents on a wide-range of issues, including on ring-fencing of business growth incentives payments.