Local Government Finance
Mr. Iain Wright
To ask the Secretary of State for Communities and Local Government if she will take steps to introduce a cap per head of population on floor damping reduction.
Mr. Woolas
The minimum guaranteed formula grant increase from one year to the next, known as the floor, has to be paid for from within the total formula grant available. Our current method of paying for the floor, scaling back increases in grant above the floor, was the most widely supported when we last consulted on this in 2005. We are currently reviewing the distribution of formula grant for the next three year settlement, from 2008-09 to 2010-11.