§ Harry CohenTo ask the Deputy Prime Minister what the six per cent. real terms increase in the local government grant settlement equates to in cash terms; how much has been distributed to local authorities in cash terms under the settlement; and if he will make a statement on the purposes for which the difference between the two sums will be used. [101020]
§ Mr. RaynsfordThe local government finance settlement for 2003–04 distributed £43,894 million of formula grant, made up of revenue support grant, redistributed business rates, and police grant. That is £2,449 million or 5.9 per cent. more in cash terms than was distributed in 2002–03. It is for local authorities to decide how they spend this increased grant. On top of that, there will be increases in specific and special grant, bringing the overall increase over 2002–03 to £3,819 million or eight per cent. in cash terms. Some of these grants are ring-fenced to particular purposes.