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Office of the Deputy Prime Minister

Answer

Mr. Hoyle: To ask the Deputy Prime Minister what assessment he has made of the implications of the (a) Gershon Review and (b) Spending Review on the budgets of (i) Lancashire county council and (ii) Chorley borough council. [194625] Mr. Raynsford: The Government looked with local authorities in the context of the Spending Review 2004 (SR04) at the pressures councils face up to 2007-08, along with the scope for efficiency savings. SR04 provides continued investment in local government services with £7.2 billion more in general grant for local government programmes by 2007-08 over 2004-05. The Gershon Review's expectation is each authority creates efficiency gains from existing budgets of at least 2.5 per cent., at least half of which is cashable. There will be no impact on authorities' overall budgets as there is no intention to increase or reduce planned budgets as a result of implementing the review. Efficiency gains made by each authority can be re-invested into front line local services. The provisional local government finance settlement for 2005-06 will be announced shortly which will be followed by a consultation period where authorities will be able to make written representations on the Government's proposals.

Secondary information

Type

Written question

Reference

194625; 426 c68W

Session

2003-04

Subjects

Local government finance Public sector Public expenditure Reviews Lancashire County Council Lancashire Chorley Chorley Council

Contains statistics

Yes

Link

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