To ask the Secretary of State for Communities and Local Government what government funding is related to local authority achievement of local area agreement targets. (252297)

Performance Reward Grant is paid based upon performance against Local Area Agreement targets. I refer the hon. Member to the answer I gave him on 24 June 2008, Official Report, column 265W - 269W and also to my announcement to the House in February 2008 of least £340m to continue this financial incentive for LAAs agreed in 2008.

To ask the Secretary of State for Communities and Local Government whether any local authority which has increased council tax revenue through reviewing or reducing the number of households entitled to council tax discounts or exemptions has sought her Department's agreement to count that increased revenue as an annual efficiency saving. (252298)

Our guidance to councils states that efficiency savings are realised where

“an organisation is able to: reduce inputs for the same or improved outputs; reduce unit costs to meet increased demand; or optimise use of assets to improve outputs from them.”

It also states that

“new sources of income or increases in the level of existing charges should not be counted.”