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Local Authority Business Growth Incentives Scheme

Volume 496: debated on Thursday 16 July 2009

To ask the Secretary of State for Communities and Local Government how much funding was allocated under the Local Authority Business Growth Incentive Scheme to local authorities in (a) 2008-09, (b) 2009-10 and (c) 2010-11; and how much such funding has been (i) distributed to and (ii) spent by each local authority in each such year. (285731)

In 2008-09, £396 million in LABGI grants was allocated and distributed to local authorities, in respect of business growth in 2007-08. Details of how this funding was distributed are set out in the relevant Grant Determinations, which can be viewed on the Communities and Local Government website at:

Grant Determination No 2 (2008) [No 31/1238]

Grant Determination No2 (2009) [No 31/1287]

Paper copies of the above have been sent to the hon. Lady and copies have been deposited in the Commons Library.

I refer the hon. Lady to the answer given to the hon. Member for Rochdale (Paul Rowen) on 7 July, Official Report, column 835. The final details about the allocation and distribution of LABGI funds in 2009-10 and 2010-11 are currently being discussed with Treasury Ministers and an announcement will be made in the next few weeks.

Records are not kept centrally of how local authorities spend LABGI funding. The grants are not ring-fenced and it is for local authorities to decide how the money is best spent.