§ Mr. PriskTo ask the Secretary of State for Transport, Local Government and the Regions what plans his Department has for changing the area cost adjustment formula for local authorities. [8164]
§ Dr. WhiteheadWe are looking at a range of options for the area cost adjustment as part of our current review of the grant distribution formulae. We are actively involving local government in this process. We have not yet reached conclusions on the best way forward, and the Government will consult widely before taking final decisions. Any change to the area cost adjustment would be implemented in the 2003–04 local government finance settlement.