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Office of the Deputy Prime Minister

Answer

Mr. David Atkinson: To ask the Deputy Prime Minister if he will list those local authorities for whom the revenue budget settlement for 2005-06 has been based on 1991 Census data; and if he will make a statement. [218373] Mr. Raynsford: The main indicators used in the Formula Spending Share formulae are the population estimates. The population estimates from mid-2001 onwards have been based on the 2001 Census. They are then adjusted for births, deaths and both internal and external migration. The population estimates used in the Local Government Finance Settlements from 2003-04 onwards have been based on the 2001 Census. The formulae also use other socio-demographic indicators derived from the Census, for example population sparsity and population density. 1991 Census data is used for these other indicators in the 2005-06 Formula Spending Share formulae for Education, Personal Social Services, Police, Highway Maintenance and Environmental, Protective and Cultural Services. This Census data is not used in either the Fire or the Capital Financing Formula Spending Share formulae, and is therefore not used in the calculation of RSG for single service fire authorities only, i.e. LFEPA, metropolitan fire authorities and combined shire fire authorities. I announced on 21 July 2004 that we would not be amending the other socio-demographic indicators to incorporate 2001 Census data in the 2005-06 settlement (21 July 2004, Official Report, column 30WS). This is because it would have been technically incorrect to have simply introduced the data without first amending the statistical models underlying the Formula Spending Share formulae. Changing the formulae in this way would have broken the formula freeze that we have introduced to provide funding stability for authorities. Further research is being undertaken on the formula changes needed to incorporate the 2001 Census data into the Formula Spending Share formulae. The Office of the Deputy Prime Minister will be consulting local authorities during the summer of 2005 on the formulae for the 2006-07 settlement.

Secondary information

Type

Written question

Reference

431 c1549-50W;431 c1543-4W; 218373

Session

2004-05

Subjects

Census Local government finance Population Reform

Link

View this Written question on www.publications.parliament.uk