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Office of the Deputy Prime Minister

Answer

Mr. Michael Foster: To ask the Deputy Prime Minister what percentage increases in local government grant were awarded to Worcester City Council in each year since 1992-93. [112989] Mr. Raynsford: There are two funding streams to help support revenue funding by local authorities. These are Revenue Support Grant (RSG) and redistributed non- domestic rates (NNDR). It is important to look at the total of these funding streams (formula grant) in order to compare support from central government year-on- year, since the level of non-domestic rates can vary year- on-year. Since 1997 there have been many changes in local government functions and funding. To enable a like-for- like comparison between years, we calculate adjusted grants. The percentage change figures have been calculated on the basis of these like-for-like comparisons. However, until the introduction of Central Support Protection Grant in 1999-2000, there was no need to calculate grant on a like-for-like basis. For this reason grant comparisons in the years between 1992-93 and 1998-99 do not make logical sense and are not available. For information, the unadjusted grant amounts for these years are still shown. The following table shows the amount of formula grant (which consists of RSG, NNDR and SSA Reduction Grant (where appropriate)) received by Worcester City Council during the period. The table also shows the percentage year-on-year changes in formula grant on a like-for-like basis where possible. The large decrease in formula grant between 1992-93 and 1993-94 represents a significant change in the way formula grant was paid. Up until 1992-93 all formula grant was paid to the billing authority and then paid by the billing authority to other tiers of authority. In subsequent years each authorities grant has been paid directly and hence billing authorities receive less grant. _________________________________________________________________________________________________. Year Formula grant (i.e.RSG+NNDR) (£ millions) Increase in formula grant, (percentages) 1992-93 40,482 n/a 1993-94 5,518 n/a 1994-95 6,065 n/a 1995-96 6.037 n/a 1996-97 6.098 n/a 1997-98 5.981 n/a 1998-99 6.388 n/a 1999-2000 6,477 1.4 2000-01 6.723 3.8 2000-011 6.772 2001-02 6.926 2.3 2001-021 6.832 2002-03 7.088 3.7 2002-031 6.928 2003-04 7.147 3.2 _________________________________________________________________________________________________. 1 Adjusted

Secondary information

Type

Written question

Reference

112989; 405 c170-1W;405 c171-2W

Session

2002-03

Subjects

Local government finance Worcestershire Worcester

Contains statistics

Yes

Link

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