Local Government Finance (Hansard, 19 November 2002)

§ Mr. Andrew Turner
To ask the Deputy Prime Minister what level of revenue support grant has been received by the Isle of Wight Council in each of the last five years at 2002 prices(a) in total and (b) per head of population; and what the anticipated figures would be for 2003–04 under each of his consultative options for reform of the local government finance formula using Treasury inflation assumptions. [80986]

§ Mr. Raynsford
The tables show the amounts of Revenue Support Grant and redistributed national non-domestic rates, and the total of these two items, for the Isle of Wight in £ millions and in 3s per head for the period 1998–99 to 2002–03.
87W
The figures are in real terms, based on the GDP deflator, with 2002–03 as the base year. The figures are based on the amount of grant actually received by the Isle of Wight for the year concerned, and so do not take into account any changes in function or responsibility.
Figures for 2003–04 under each of the consultative options could only be provided at disproportionate cost. In all events this would not give an accurate projection for 2003–4 as the consultative options were illustrated by reference to 2002–3 and did not incorporate data changes for 2003–4 which were not then Available.

Table 1: Grant in real terms in £million.

RSG NNDR RSF plus NNDR

1998–99 49.110 32.414 81.253

1999–2000 48.669 34.399 83.068

2000–01 48.753 38.293 87.046

2001–02 53.653 36.970 90.623

2002–03 48.409 39.822 88.231

Table 2: Grant per head in real terms in £

RSG NNDR RSG plus NNDR

1998–99 391 258 650

1999–2000 387 273 660

2000–01 384 302 685

2001–02 418 288 707

2002–03 374 308 682

§ Mrs. Gillan
To ask the Deputy Prime Minister what impact changes in the local government formula grant will have on public services in(a) Chesham and Amersham and (b) Buckinghamshire. [81169]

§ Mr. Raynsford
We will announce the new system for distributing formula grant, including detailed grant allocations for individual authorities, at the time of the provisional local government finance settlement which we expect to be around the start of December. Once the Government have allocated its grant, decisions about budgets and services are primarily for local councils to make. However, we have already guaranteed that no authority will face a cut in grant next year on a like for like basis, and we hope to do better than that when we announce the actual floors and ceiling scheme as part of the provisional settlement.

§ Mrs. Gillan
To ask the Deputy Prime Minister what impact changes in the local government formula grant will have on public services delivered by(a) Chiltern District Council and (b) Buckinghamshire County Council. [81173]

§ Mr. Raynsford
We will announce the new system for distributing formula grant, including detailed grant allocations for individual authorities, at the time of the provisional local government finance settlement which we expect to be around the start of December. Once the Government has allocated its grant, decisions about budgets and services are primarily for local councils to make. However, we have already guaranteed that we88W will use grant "floors" to ensure that no authority will face a cut in grant next year on a like for like basis, and we hope to do better than that when we announce the actual floors and ceilings scheme as part of the provisional settlement.

§ Mrs. Gillan
To ask the Deputy Prime Minister what proportion of spending by(a) Buckinghamshire county council and (b) Chiltern district council (i) has been financed by council tax payers in each year since 1 January 1996 and (ii) is to be financed by council tax payers in 2002–03. [81179]

§ Mr. Raynsford
The proportions of revenue expenditure financed from the council tax for Buckinghamshire county council and Chiltern district council in the financial years 1995–96 to 2002–03 are set out in the following table:

Income from council tax as a percentage of spending

Year Buckinghamshire county council ¹ Chiltern district council

1995–96 27 51

1996–97 28 57

1997–98 31 67

1998–99 34 65

1999–2000 34 60

2001–01 35 62

2001–02² 34 61

2002–03² 36 62

¹ For 1997–98 onwards this excludes the area of Milton Keynes borough council, which became unitary from 1 April 1997.

² 2001–02 and 2002–03 are budgeted figures; 1995–96 to 2001–01 are outturn figures.

Source:
1995–96 to 2000–01 Revenue Summary Returns.
2001–02 and 2002–03 Budget Estimate Returns.

Table 1: Grant in real terms in £million.
	RSG	NNDR	RSF plus NNDR
1998–99	49.110	32.414	81.253
1999–2000	48.669	34.399	83.068
2000–01	48.753	38.293	87.046
2001–02	53.653	36.970	90.623
2002–03	48.409	39.822	88.231

Table 2: Grant per head in real terms in £
	RSG	NNDR	RSG plus NNDR
1998–99	391	258	650
1999–2000	387	273	660
2000–01	384	302	685
2001–02	418	288	707
2002–03	374	308	682

Income from council tax as a percentage of spending
Year	Buckinghamshire county council ¹	Chiltern district council
1995–96	27	51
1996–97	28	57
1997–98	31	67
1998–99	34	65
1999–2000	34	60
2001–01	35	62
2001–02²	34	61
2002–03²	36	62
¹ For 1997–98 onwards this excludes the area of Milton Keynes borough council, which became unitary from 1 April 1997.
² 2001–02 and 2002–03 are budgeted figures; 1995–96 to 2001–01 are outturn figures.