Departmental Spending (Deprived Areas) (Hansard, 25 October 2001)

§ Ms Keeble

The table sets out Department for Transport, Local Government and the Regions expenditure, which either partly or wholly, uses measures

£ million
Programme	1996–97	1997–98	1998–99	1999–2000	2000–01	2001–02	2002–03
Single Regeneration Budget	277.5	458.8	560.9	691.9	725.1	873	¹—
Land and Property Programme	—	—	—	—	—	370	¹—
New Deal for Communities	—	—	—	60	120	240	350
Neighbourhood Renewal Fund	—	—	—	—	200	300	400
Neighbourhood Management	—	—	—	45
Housing Capital Allocations	—	—	—	—	—	—	—
Housing Revenue Account Subsidy	—	—	—	—	—	—	—
¹ Both these programmes will be subsumed into 'single pot' for Regional Development Agencies from April 2002. The Department for Trade and Industry will have effective responsibility for all grant in aid to RDAs from November 2001.

'The Single Regeneration Budget' was based on a competitive bidding process but also included an indicative regional allocation. The methodology for determining the regional 'indicative' allocations from Round 2 onwards was: 50 per cent. based on region's share of district level deprivation, as set out in the Index of Local Conditions 1991 for areas with above average deprivation; 50 per cent. based on region's share of 1993 population, again in areas with above average deprivation.

As part of the Comprehensive Spending Review 1998 there was a Public Service Agreement target that required 80 per cent. of the moneys to be spent in the 50 most deprived local authority areas as measured by the Index of Local Deprivation 1998.

'The Land and Property Programme' includes an element of the Indices of Deprivation 2000 for the period 2001–02 only. 80 per cent. of the budget was allocated on a criteria basis involving the use of seven indicators, one of which was based on the Indices of Deprivation 2000—a 'deprived wards' indicator which captured the number of people living in the most deprived local authority districts. The Indices element therefore represents only a small aspect of the allocation methodology. No other indices were used in previous years, nor will they be used in future years due to the commencement of the new single pot for Regional Development Agencies from April 2002.

'New Deal for Communities': The 1998 Index of Local Deprivation has been used as a basis for selection for Rounds 1 and 2 of this programme.

The overall ranking measuring degree of deprivation at the district level was used as the main indicator for selection as it was the most up to date and robust. To ensure a good geographical spread, a regional quota system was applied in addition.

'The Neighbourhood Renewal Fund' is distributed to authorities which figure in the 50 most deprived authorities against the six individual district level measures in the Indices of Deprivation 2000. This produces a list of 81 authorities, to which were added seven authorities not included in this list but which were in the 50 most deprived areas on any of the four measures under the Index of Local Deprivation 1998. The

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of multiple deprivation to decide allocation levels. This question covers a period during which three such measures have been employed by Government. These are: The Indices of Deprivation 2000, published August 2000 The Index of Local Deprivation 1998, published 1998 The Index of Local Conditions 1991, published 1994

allocations are based on a standard amount per head of population living in the 10 per cent. most deprived wards nationally.

'The Neighbourhood Management Pathfinder Programme' is targeted on areas selected from among authorities which include more than one ward in the worst 10 per cent. as measured by the Indices of Deprivation 2000, but excluding any local authority where there is a New Deal for Communities Partnership.

'Housing Capital Allocations': The needs indices used in the allocation of these resources to local authorities (Generalised Needs Index) and Registered Social Landlords (Housing Needs Index) include an element of targeting of resources to deprived areas, based on the Index of Local Conditions 1991. The way in which the indices are constructed and used means that the targeting does not allocate a specific amount of the available resources. The targeting accounted for 30 per cent. of the Generalised Needs Index (before adjustment for regional cost variations) in 2001–02. This was increased from 20 per cent. in earlier years as a result of the creation of Major Repairs Allowance to allocate resources for maintaining council housing; there is no targeting to deprived areas in these allocations. The targeting within the Housing Needs Index has been 15 per cent. throughout the period.

'Housing Revenue Account Subsidy': The maintenance allowance within this subsidy system includes a component based on the Index of Local Conditions 1991. This component has accounted for around 10 per cent. of the resources available for the maintenance allowance, which equates to around £200 million, throughout the period.