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Local Government Finance

Volume 503: debated on Thursday 7 January 2010

To ask the Secretary of State for Communities and Local Government what the monetary value is of the area-based grant to be allocated in (a) 2010-11 and (b) 2011-12; and what criteria are used to allocate that grant to local authorities. (307833)

The monetary value of area based grant (ABG) for 2010-11 is £5,028,317,187. The allocation for 2011-12 has yet to be announced. Decisions on future public spending plans will be a matter for the next spending review.

The criteria used to allocate departmental contributions to ABG are decided by the respective Departments, and will reflect factors such as relative need for the services covered by each contribution to the Grant. For example, the distribution of money for schools intervention will take account of the number of maintained schools in the area.

To ask the Secretary of State for Communities and Local Government what the central Government grant per capita was to each local authority, including police and fire authorities in (a) 2008-09 and (b) 2009-10. (308654)

I have placed in the Library of the House tables showing central Government grant per capita by local authority for 2008-09 and 2009-10. However, it should be noted that figures between the two years are not directly comparable because the 2008-09 figures are based on outturn information whereas those for 2009-10 are based on budget information. It should also be borne in mind that local authorities may not have complete information about all central Government grants at the time they completed the budget returns.

The definition of central Government grant used here is the sum of formula grant (revenue support grant, redistributed non-domestic rates and police grant), Greater London authority grant, specific grants inside Aggregate External Finance (AEF), i.e. revenue grants paid for council’s core services and Area Based Grant (ABG).

Figures exclude grants outside AEF (i.e. where funding is not for authorities’ core services, but is passed to a third party, for example, rent allowances and rebates), capital grants, funding for the local authorities’ housing management responsibilities and those grant programmes (such as European funding) where authorities are simply one of the recipients of funding paid towards an area.

Mid-year 2008 population estimates are used to calculate per capita information. 2009 figures are not yet available. For National Parks mid-year 2007 estimates are used because they are the most recent available.