To ask the Secretary of State for Communities and Local Government what amount and proportion of central Government grant to local authorities comprised redistributed business rate revenue in each local authority area in the most recent year for which figures are available. (262166)

Business rates are pooled centrally and the revenue contributes towards funding local government alongside other grants.

I have placed in the Library of the House a table showing the details of amounts from the national business rates pool, the amounts of other grant payments and the proportion of the total that each represents, in each local authority area for 2007-08.

To ask the Secretary of State for Communities and Local Government what methodology is used to calculate performance reward grant; and how much funding her Department has allocated for distribution under the grant in (a) 2008-09 and (b) 2009-10. (262274)

For Local Area Agreements (LAA) and Local Public Service Agreements (LPSAs) agreed prior to 2008 the total potential reward grant (if all targets are achieved) is equivalent to 2.5 per cent. of an authority's net budget requirement (the budget requirement plus dedicated schools grant less parish precepts) in the financial year prior to the start of the LAA or LPSA. In the case of two-tier areas, the net budget requirement of any district councils was also included in the calculation. Grants are paid as half revenue grant and half capital grant.

The proportion of the potential grant payable to any authority is determined by their performance in relation to the improvement targets agreed. Local authorities are currently submitting claims and £378 million is allocated to meet these claims in 2008-9. For 2009-10 a total of £257 million has been allocated. It is difficult to accurately predict in advance the exact funding levels required as this depends upon the final performance achieved in relation to each target.