Written question asked by Peter Luff (Conservative) on Wednesday, 26 May 2004, in the House of Commons. It was due for an answer on Monday, 7 June 2004. It was answered by Nick Raynsford (Labour) on Monday, 7 June 2004 on behalf of the Office of the Deputy Prime Minister.

Office of the Deputy Prime Minister

Question: To ask the Deputy Prime Minister, what assessment he has made of the further report by Professors Blanchflower and Oswald on Calculating an Appropriate Regional Funding Adjustment for Worcestershire, a copy of which has been sent by the county council; and what assessment he has made of the relative pay levels of Worcestershire compared to neighbouring areas. - Inc ref to 2001 white paper 'strong local leadership - quality public services' (Cm 5237).

Answer: Mr. Luff: To ask the Deputy Prime Minister what assessment he has made of the further report by Professors Blanchflower and Oswald on Calculating an Appropriate Regional Funding Adjustment for Worcestershire, a copy of which has been sent by the county council; and what assessment he has made of the relative pay levels of Worcestershire compared to neighbouring areas. [177065] Mr. Raynsford: The Office of the Deputy Prime Minister have considered the further report by Professors Oswald and Blanchflower and concluded that it does not provide a case for awarding Worcestershire an area cost adjustment (ACA) top-up within the local government funding system. The relative pay levels of Worcestershire, if they were to be considered separately, would similarly not justify an ACA factor higher than one, which is the present ACA factor for Hereford and Worcestershire. As announced in the 2001 white paper `strong local leadership--quality public services' (CM5237) the funding formulae will be frozen for at least 2004-05 and 2005-06. The Office of the Deputy Prime Minister does not intend to change the way that the ACA is calculated during this period.

Secondary information