§ Dr. KumarTo ask the Secretary of State for Transport, Local Government and the Regions what assessment his Department has made of the effectiveness of the spending formula for local authorities in England, Scotland and Wales; and if he will make a statement. [2589]
§ Dr. WhiteheadAs part of our review of the grant distribution formulae for England, the Department published 'Modernising Local Government Finance: A Green Paper' in September 2000. The Green Paper includes an assessment of the existing formulae against our aims for a good local government finance system. In particular, the Green Paper argues that the formulae
Have become increasingly difficult to explain and understand;Rely too much on statistical analysis of spending, and do not recognise the extent to which past spending patterns are limited as indicators of patterns of future need;Have not always given authorities much certainty from year to year about the level of grant they might expect, hampering forward planning; andDo not allow for any fine-tuning to take account of the particular circumstances of individual authorities.The Green Paper consulted on a number of options which could address these concerns. We will publish our conclusions on the way forward in a White Paper later this year.Local government finance in Scotland and Wales is a devolved matter for the Scottish Parliament and Welsh Assembly.