HC Deb 12 December 2002 vol 396 cc485-6W
Mr. Michael Foster

To ask the Deputy Prime Minister in the Local Government Finance Report (England) 2003–04, what earnings figure was used to calculate the area cost adjustment for each local authority and for each category as listed in Annex H, page 84. [87019]

Mr. Leslie

The Area Cost Adjustment uses data drawn from the New Earnings Surveys for 1999, 2000 and 2001. A full methodology guide to how this data is used, with the results for each area of the country, has been published on the office of the Deputy Prime Minister's website www.local.odpm.gov.uk/fmance/0304/ acatech.pdf). A copy has also been placed in the Library of the House.

Hugh Bayley

To ask the Deputy Prime Minister if the area cost adjustments for(a) local education authority education, (b) police, (c) general local government and (d) other local services are calculated on the same basis; and if he will place in the Library the formula for calculating area cost adjustment weightings and the weightings derived from the formula for (i) each local authority area receiving area cost adjustment, (ii) the City of York and (iii) North Yorkshire county council. [87159]

Mr. Leslie

The method for calculating the labour and business rate elements of the area cost adjustment is the same for all local government services. What varies between services is the proportion of total costs assumed to relate to labour and business rates respectively. A full methodology guide has been placed in the Library of the House. The resulting area costs factors for all authorities are published in annex H of the draft Local Government Finance Report, which was placed in the Vote Office and the Library of the House on 5 December 2002. The City of York and North Yorkshire county council do not receive an area cost top-up.