Department for Communities and Local Government - Local Government Finance Settlement 2007/08
DCLG logo

2007/08 Settlement
Table 4: Annotated Chapter 5 of the LGFR for Arun (R286)

Part A - Relative Needs Amount = £ 4,230,870

From the total of ODPM Formula Grant which the Secretary of State proposes to pay to receiving authorities, which is £21,604,681,634 he proposes to pay 70.99% or £15,337,163,492 with respect to the relative needs of authorities.

The Relative Needs Amount is calculated as follows.


(j)   District-Level EPCS RNF (0.00031477195873)
      multiplied by 1,000,000 and 
      divided by PROJECTED POPULATION IN 2007 (     149,420)
      = 0.00210662534288;
(k)   The minimum for all authorities of the result of (j)
      = 0.00185210760840;
(l)   The result of (j) minus the result of (k)
      = 0.00025451773447;

(m)   Mixed-tier services RNF (0.00001184790284)
      multiplied by 1,000,000 and 
      divided by PROJECTED POPULATION IN 2007 (     149,420)
      = 0.00007929261709;
(n)   The minimum for all authorities of the result of (m)
      = 0.00000366790860;
(o)   The result of (m) minus the result of (n)
      = 0.00007562470848


(p)   Capital Financing RNF (0.00001827201064)
      multiplied by 1,000,000 and 
      divided by PROJECTED POPULATION IN 2007 (     149,420)
      = 0.00012228624439;
(q)   The minimum for all authorities of the result of (p)
      = 0.00001048969723;
(r)   The result of (p) minus the result of (q)
      = 0.00011179654715;

(s)   The sum of:
      the result of (l) (0.00025451773447) plus
      the result of (o) (0.00007562470848) plus

      the result of (r) (0.00011179654715)

      =  0.00044193899011

(t)   The result of (s) (0.00044193899011)
      divided by 1,000,000 and 
      multiplied by PROJECTED POPULATION IN 2007 (     149,420)

      = 0.00006603452390

(u)   The sum for all authorities of the result of (t)

      = 0.23937921826196

(v)   The result of (t) (0.00006603452390)
      divided by the result of (u) (0.23937921826196)
      multiplied by £15,337,163,492

      = £     4,230,870

Part B - Relative Resource Amount = £ -4,605,431

From the total of ODPM Formula Grant which the Secretary of State proposes to pay to receiving authorities, he proposes to adjust the amount payable by -24.57% or -£5,308,270,277 with respect to the relative resources of authorities.

The Relative Resource Amount is calculated as follows.

	
(j)   Taxbase (      60,360)
      multiplied by Lower-Tier Share of Taxbase (0.15847951) 
      divided by PROJECTED POPULATION IN 2006 (     149,420)
      = 0.06402006056626;
(k)   The minimum for all authorities of the result of (j)
      = 0.04049968093927;
(l)   The result of (j) minus the result of (k)
      = 0.02352037962699


(m)   The sum of:
      the result of (l)  (0.02352037962699)

      =  0.02352037962699

(n)   The result of (m) (0.02352037962699)
      multiplied by PROJECTED POPULATION (     149,420)
      = 3,514.4151238647

(o)   The sum for all authorities of the result of (n)
      = (4,050,753.316325);

(p)	The result of (n) (3,514.4151238647)
      divided by the result of (o) (4,050,753.316325)
      multiplied by  £5,308,270,277
      = £    -4,605,431

Part C - Central Allocation = £ 10,182,367

From the total of ODPM Formula Grant which the Secretary of State proposes to pay to receiving authorities, he proposes to pay £11,575,788,419 with respect to the central allocation.

The Central Allocation is calculated as follows

. 

(a)   The sum of:
  
         the result of (k) from paragraph 5.6 of this Report 
            (0.00185210760840)plus 
   
         the result of (n) from paragraph 5.6 of this Report 
            (0.00000366790860)plus 

 
         the result of (q) from paragraph 5.6 of this Report 
            (0.00001048969723)

      = 0.00186626521424;	

(b)   The result of (a) (0.00186626521424)
      divided by the result of (u) from paragraph 5.6 of this Report 
         (0.23937921826196)
      multiplied by £15,337,163,492
      divided by 1,000,000

      = £119.572680193306);
	
(c)   The sum of: 
   
         the result of (k) from paragraph 5.8 of this Report 
             (0.04049968093927)

	
      =  0.04049968093927;


(d)   The result of (c) (0.04049968093927)
      divided by the result of (o) from paragraph 5.8 of this Report 
         (4,050,753.316325)
      multiplied by -£5,308,270,277

      = £-53.072412899476;
	
(e)   The sum of the results of (b) (£119.572680193306)
      plus (d) (£-53.072412899476)

      = £66.5002672938300;	

(f)   The result of (e) (66.5002672938300)
      multiplied by PROJECTED POPULATION (     149,420)

      = £9,936,469.9390; 
	
(g)   The sum for all authorities of the result of (f)

      = £11,305,136,484;	

(h)   The result of (f) (9,936,469.939044)
      divided by the result of (g) (11,305,136,483.9)
      multiplied by £11,595,117,419 

      = £    10,191,344; 
	
  
(i)   The result of (h) is adjusted to reflect the transfer of responsibility 
      for Critical Ordinary Watercourses to the Environment Agency
      
      i.e. The result of (h) (£10,191,344) minus
           Critical Ordinary Watercourse Adjustment (£     8,977)
           = £    10,182,367;

Part D - Floor Damping = £ 110,382

The results from the Part A, Part B and Part C when added together with Police Grant form Formula Grant before floor damping. In order to ensure that authorities receive at least a minimum grant increase (called the ‘floor’) we adjust the results.

The floor damping calculations are given below.

The final amount of Formula Grant for each authority for 2007/08 is calculated as follows:


(a)   which represents the previous year’s grant support 
      (£     9,657,436), is the sum of the following items:

         the First Secretary of State’s estimates of the authority’s share of the 
         Distributable Amount (Redistributed National Non-Domestic Rates) 
         calculated in accordance with section 6 of the Local Government Finance 
         Report 2006/2007 after adjusting for changes in the functions of 
         councils or the financing of particular services, plus

         the First Secretary of State’s estimate of the authority’s share of 
         Revenue Support Grant calculated in accordance with section 3 of the 
         Local Government Finance Report 2006/2007 after adjusting for changes 
         in the functions of councils or the financing of particular services, 
         plus

         the Secretary of State for the Home Department’s estimate of the amount 
         of any Police Grant payable to the authority for 2006/2007 calculated in 
         accordance with section 5 of the Police Grant Report (England and Wales) 
         2006/2007, after adjusting for changes in the functions of councils or 
         the financing of particular services.

(b)   (a) (£       9657436)
      multiplied by      1.027

      = £       9918187

(c)   the sum of the following items:
         the Relative Needs Amount as defined in paragraph 5.6 of this Report
         (£       4230870); 
         plus the Relative Resource Amount as defined in paragraph 5.8 of this Report
         (£      -4605431; 
         plusthe Central Allocation as defined in paragraph 5.10 of this Report
         (£      10182367); 
  
         plus the Principal Formula Police Grant as shown in column (a) of the table contained 
         in paragraph 3.1 of the Police Grant Report (England and Wales) 2006/2007
         (£      0.000000 


      = £       9807805

(d)   the result of:
         (c) (£     9,807,805)
         minus (b) (£     9,918,187)
         = £      -110,382
      multiplied by 0.61588206; 
      plus the result of (b) (£     9,918,187)

      = £     9,850,205

(k)	either the result of (b) (£     9,918,187)
      or the result of (d), (£     9,850,205)
      whichever is the greater

      = £     9,918,187).

Return to: 2007/08 Local Authority Tables Index

Updated November 2006
Return to Local Government Finance Index
Return to DCLG Local Government Index
Return to DCLG Home Page
Terms and conditions