§ Gillian MerronTo ask the Secretary of State for the Environment, Transport and the Regions what progress has been made on reviewing the local government finance system; and in particular what research is being undertaken in support of the review. [87965]
§ Ms ArmstrongMy Department has let five contracts. Two cover research into the use of prudential indicators to regulate local authority borrowing, and a non-statutory scheme for debt provision. The other three contracts are in support of the review of the Revenue Grant Distribution System and comprise an opinion survey of local authorities, comparative lessons from approaches and developments in other countries, and potential new data sources for use in grant distribution. Further details of these projects are given in the Department's 1999/2000 Local and Regional Government Research. programme Annual Newsletter, a copy of which has been placed in the Library.
The Government plan to publish a consultation paper on local government finance in spring 2000.