Under the comprehensive performance assessment, (CPA) local authorities who were categorised as three or four star authorities received all specific revenue grants on a non-ringfenced basis, other than the Supporting People Grant and those grants passported to schools.
With the introduction of the new local performance framework, of which comprehensive area assessment (CAA) is part, the Government have provided local authorities with greater flexibility in the way they use Government grant more generally. We have increased significantly the amount of funding for all authorities which is not ring-fenced. This year, we introduced the Area Based Grant—a non-ring fenced grant which is planned to be worth £4.7 billion by 2010-11. It is made up of over forty individual grant streams from seven Government Departments. As a non-ring fenced grant, local authorities are free to use it as they see fit to support priorities. There are no links with either the CPA or CAA.
When CPA is replaced by CAA in April 2009, there will be no overall categorisation of local authorities. The future of freedoms and flexibilities under CAA, including ring-fencing, is currently under consideration. An announcement on its future will be made before CAA comes into operation in 2009.