§ Mr. ColemanTo ask the Deputy Prime Minister (1) what assessment he has made of the advantages of the system of the area cost adjustments within the local government finance system; [68893]
(2) what plans he has to ensure that regional wage differentials are reflected in the local government finance system. [68892]
§ Mr. LeslieAs we set out in the Green Paper, "Modernising Local Government Finance", we believe that the case for recognising that pay levels vary across the country is clear-cut. There will therefore continue to be an area cost adjustment in the new local government finance system that we intend to introduce in 2003–04.
We do, however, recognise that how the adjustment is calculated is difficult and contentious. That is why the formula grant distribution consultation paper we published on 8 July includes a range of alternative options on which we are inviting comments. We will be carefully considering the views that are put to us during the consultation period before taking final decisions on the best way forward.
§ Mr. ColemanTo ask the Deputy Prime Minister (1) what the average SSA per head of population for local services after discounting area cost adjustment is in each(a) metropolitan area, (b) Government office region and (c) local authority; [68897]
(2) what the average SSA per head of population for local services is in each (a) metropolitan area, (b) Government office by area and (c) local authority. [68898]
§ Mr. LeslieThe average 2002–03 SSA per head of population, using the mid-2000 population estimates, for each metropolitan area is:
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£ Metropolitan area SSA per head Greater Manchester 1,061 Merseyside 1,141 South Yorkshire 1,027
£ Metropolitan area SSA per head Tyne and Wear 869 West Midlands 1,114 West Yorkshire 1,015 The area cost adjustment (ACA) factor for each of the metropolitan areas is 1,000, and hence the ACA contribution for each of these areas is zero. The average 2002–03 SSA per head of population, excluding the ACA contribution is, therefore, the same as that in the table.
The average 2002–03 SSA per head of population, both including and excluding the ACA contribution, for each Government office area is:
£ Government office Including the ACA contribution SSA per head Excluding the ACA contribution South-west 876 876 South-east 892 833 London 1,265 1,085 Eastern 909 865 East Midlands 906 906 West Midlands 989 989 Yorkshire and Humberside 992 992 North-east 1,043 1,043 North-west 1,027 1,027 A table showing the 2002–03 SSA per head, both including and excluding the ACA contribution, for each local authority has been placed in the Library of the House.
§ Mr. ColemanTo ask the Deputy Prime Minister what plans he has to impose transitional arrangements on the implementation of changes to the local government finance system; and if he will make a statement. [68890]
§ Mr. LeslieAs we announced in the local government White Paper "Strong Local Leadership—Quality Public Services", we will continue to operate the floors and ceilings scheme to limit changes in grant to councils in any one year. Precise details of our proposals for the scheme for 2003–04 will be announced in the provisional local government finance settlement around the end of November 2002.
§ Mr. SteinbergTo ask the Deputy Prime Minister how many local authorities spent(a) at or below SSA levels and (b) above SSA levels in each of the last three years.
§ Mr. LeslieIn 1998–99, 78 out of 433 authorities incurred a Net Revenue Expenditure at or below SSA. In 1999–2000 there were 52 and in 2001–01 there were 54.
SSA includes Police Grant in the case of police authorities and, in 2000–01, General GLA grant in the case of the Greater London Authority.
§ Mr. GummerTo ask the Deputy Prime Minister what steps he is taking to ensure that the new grant formula that will replace SSA will be fairer and simpler and address the needs of all classes of authority. [69985]
§ Mr. RaynsfordOn 8 July, we published a consultation paper setting out a number of options for reforming the distribution system for general revenue grants. One of the aims of the consultation paper is to
241Wmake the system simpler overall, but it must be recognised that the formula will never be completely simple.
Central and local Government have worked together to develop the options contained in the consultation paper to make the system fairer for all local authorities. Decisions on the future funding system will be taken only after all consultation responses have been fully considered.
§ Mr. McNamaraTo ask the Deputy Prime Minister on how many occasions a local authority has put into the public domain the confidential draft of the local authority's corporate governance inspection by the Audit Commission prior to publication; and what action he intends to take against such local authorities. [69692]
§ Mr. LeslieOf the corporate governance inspections that have been carried out to date four reports have come into the public domain prior to publication. Such premature disclosure does not help authorities to derive full benefit from inspections. The Audit Commission strongly advises local authority officers and members not to reveal the contents of draft reports prior to an agreed release date. Confidential drafts are provided in order to allow full discussion and deliberation of the recommendations within the council; and between the council and the inspectors, and the incorporation of any subsequent changes to the report before publication of a final report. The detailed management of these arrangements is a matter for the Audit Commission and the authority concerned.