HC Deb 13 March 2001 vol 364 cc537-8W
Mr. Walter

To ask the Secretary of State for the Environment, Transport and the Regions how the reform of the local government grant system will take account of the services provided by district authorities which have urban and rural characteristics. [153079]

Ms Beverley Hughes

Last September's local government finance Green Paper consulted on options for making the current grant distribution system for local authorities fairer. A White Paper will be published later this year setting out our decisions on the way forward.

Any reforms to the revised grant distribution system will first be discussed with local government. Like the present grant distribution system, it would be expected to take account of a range of factors, including services provided by authorities in urban and rural areas.

Mr. Walter

To ask the Secretary of State for the Environment, Transport and the Regions what plans he has to introduce a local government grant system based predominantly on populations. [153051]

Ms Beverley Hughes

Last September's local government finance Green Paper consulted on options for making the current grant distribution system for all local authorities fairer. A White Paper will be published later this year setting out our decisions on the way forward.

The existing formulae for distributing revenue grant are based predominantly on local authority population figures including relevant client groups (such as schoolchildren or elderly people). Were we to decide to continue to distribute grant by formula, this would continue to be the case.

As with the present system, such a formula could be modified to take other factors into account. However, the overall aim of any change would be to have a system that is more transparent and comprehensible as well as fairer, than that at present.

Mr. Walter

To ask the Secretary of State for the Environment, Transport and the Regions what measures he is taking to ensure an equitable distribution of Government grant to district councils. [153052]

Ms Beverley Hughes

Last September's local government finance Green Paper consulted on options for making the current grant distribution system for all local authorities fairer. A White Paper will be published later this year setting out our decisions on the way forward.