HC Deb 19 December 1994 vol 251 cc962-3W
Mr. Burden

To ask the Secretary of State for the Environment (1) how the amount of money allowed by his Department for the inclusion of 9,000 Frankley residents into Birmingham reflects the pro rata to population formula used by his Department;

(2) what is the pro rata to population calculation which his Department has used in the calculation of the capping limit for Birmingham city council for 1995–96;

(3) how much he has allowed in Birmingham city council's capping limit for 1995–96 for the addition of an extra 9,000 residents of Frankley transferred to Birmingham as a result of boundary changes.

Mr. Robert B. Jones

Non-domestic rates are distributed on the basis of population adjusted for boundary changes. Revenue support grant is determined by standard spending assessment calculations. In general, SSAs, other than the part relating to capital financing, are adjusted for boundary changes using population figures. However, for 1995–96 we are proposing to use pupil numbers to adjust three elements of the education calculation—for primary, secondary and post-16 education.

Relevant authorities have been sent information showing the calculations used in the boundary change adjustments. The boundary change involving 8,750 Bromsgrove residents has the following effect on the provisional SSAs for 1995–96:

£
Birmingham City Council +2,447,310
Bromsgrove District Council -664,019
Hereford and Worcester County Council -1,928,991
West Midlands Fire and Civil Defence Authority +145,700
West Mercia Police Authority -379,115
West Midlands Police Authority +379,115

The boundary change adjustment within Birmingham city council's notional amount for 1995–96 is therefore £2,447,310.

The Department is consulting on proposals for 1995–96 standard spending assessments and the content of the draft limitation of council tax and precepts (relevant notional amounts) report (England) 1995–96, sent to authorities on 1 December, and would welcome representations from authorities. We have had a representation from Birmingham city council, and we will consider it before taking our final decisions on the settlement.

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