Department for Communities and Local Government - Local Government Settlement 2009/10 - Capital Grants
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2009-10 Local Government Settlement
Provisional Capital Support to Local Authorities

Central Government provides capital support to local government through either: Supported Capital Expenditure (SCE); or through the Private Finance Initiative (PFI). More information on PFI can be found at:

http://www.local.communities.gov.uk/pfi/index.htm

Supported Capital Expenditure (SCE) can be funded in two ways

  • through revenue support for capital borrowing (SCE (R)) which is non-ringfenced and paid to authorities as a part of the Formula Grant settlement; or
  • capital grants (SCE(C)) which can either be ringfenced or non-ringfenced.

Central Government also provides capital support to the local areas via other bodies and details of these grants are not included in this note.

The Comprehensive Spending Review (CSR) 2007 was the first time that capital funding allocations were announced alongside a three year Local Government Financial Settlement. This is the second year of the CSR 2007, and we are now able to update the information on capital grants for the 2009-10 financial year. Where possible, we have included detailed allocations to local authorities. This data is currently provisional.

As part of the Chancellor of the Exchequer’s Pre Budget Report on 24th November 2008, it was announced that Government intends to take fiscal action to support the economy, businesses and households through these uncertain times. One of the measures Government will be introducing is to bring forward £3bn of capital spending from 2010-11 to 2008-09 and 2009-10. As a consequence, the capital grant figures included alongside the provisional 2009-10 settlement must be treated as indicative only and subject to change.

The bringing forward of capital spending will apply to Capital Grants (SCE(C)) only. The Supported Borrowing SCE(R) element of Formula Grant will not change as part of the three-year settlement.

Local Authorities will directly receive over £22 billion over the three years from 2008-09 to 2010-11. A table showing all capital grant programmes can be found below. Details of individual local authority allocations will be made available once the information has been confirmed by grant policy teams.

Single Capital Pot

Non-ringfenced capital support falls within the Single Capital Pot (SCP). This is a virtual pot and a generic term used to describe non-ringfenced capital grants and includes SCE(R)s.

Asset management

As part of the 2007 Comprehensive Spending Review, Communities and Local Government was asked to produce an asset management strategy for Local Government to emphasise the importance of good asset management at local authority level. The strategy was published in February 2008 and is available on the Department’s website.

http://www.local.communities.gov.uk/finance/capital/assetmanagement.htm

List of Capital Grants

DCSF
  • 14-19 Capital Fund
  • Building Schools for the Future
  • Aiming High Capital Grant (formerly part of Children’s Plan)
  • Play (formerly Children’s Plan)
  • Devolved Formula Capital (devolved to LA schools)
  • Extended Schools
  • Harnessing Technology Grant (ICT)
  • Options for Excellence (formerly ICT Mobile Technology)
  • LA Modernisation
  • Other ICT
  • Primary Capital Programme
  • Specialist Schools Capital
  • Sure Start, Early Years & Childcare Capital Grant
  • Sustainable Transport Plans
  • Targeted Capital Fund (TCF)
  • TCF 14-19 Diplomas & SEN
  • TCF Kitchens
  • TCF Standards and Diversity
  • Youth Capital Fund
  • Young People Secure Accommodation Grant

DIUS
  • Adult Safeguarded Learning (ASL)

DH
  • Mental Health
  • Social Care
  • Extracare Housing Grant
  • Infrastructure Support
  • AIDS/HIV
  • Common Assessment Framework
  • Social Care IT Infrastructure

DfT
  • Detrunking
  • Major Projects
  • Local Transport Plan; Highways Maintenance
  • Local Transport Plan; Integrated Transport
  • Road Safety
  • NEXUS
  • Urban Congestion

DEFRA
  • Air Quality
  • Contaminated Land
  • Flood and Coastal Erosion Risk Management
  • Waste Infrastructure Capital Grant

HO
  • Safer & Stronger Communities
  • Police General Capital

CLG
  • Disabled Facilities Grant
  • FRS Capital Grant
  • Gypsy and Traveller Site Grant
  • Homelessness
  • Housing Market Renewal
  • Local Enterprise Growth Initiative
  • Housing and Planning Delivery Grant
  • Private Sector Renewal Grant
  • The Growth Fund

Return to: Local Government Finance Settlement Index

Last updated on 26 November 2008
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