The DTLR is currently undertaking a three year review of the distribution of revenue grants to local authorities. The review was announced in the White paper: Modern Local Government - In Touch with the People published in July 1998. It said ...
5.16 ... central government, in partnership with local government, intends to set a three year programme of research to investigate thoroughly whether there is a better way of determining the distribution of revenue support grant which is simpler, more stable, more robust and fairer than the present arrangements for SSAs.
Discussions with local government representatives have been taking place in the Revenue Grant Distribution Review Group. All the papers presented to the review group and minutes of meetings are available from the LGA internet site.
The Education Funding Strategy Group has also been set up to take forward work on the school and local education authority funding system, following the consultation on proposals for reform in the local government finance green paper. Papers and minutes are available from the DfEE internet site.
The Green paper
The Government published Modernising Local Government Finance: A Green Paper in September 2000 which sets out options for improving grant distribution as well as proposals for reform of the capital finance system and some local taxation issues. An analysis of the 16,321 responses to consultation is also available.
Next steps
Ministers are in the process of carefully considering the responses and will publish their decisions in a white paper later this year.
Research
Three major research projects have been carried out in support of the review of revenue grant distribution: research into local authorities' attitudes on grant distribution, research into grant distribution systems used overseas (Word 97 - 700kb or Adobe Acrobat version - 450kb) and research into data sources for formulae - pdf(847).
If you require further information from DTLR regarding this review please email rgdr@DTLR.gov.uk.
The DTLR is not responsible for the contents or reliability of the linked web sites and does not necessarily endorse the views expressed within them. Listing should not be taken as endorsement of any kind. We cannot guarantee that these links will work all of the time and we have no control over the availability of the linked pages.
Some documents above are available in Adobe Acrobat format for downloading. The Adobe Acrobat Reader ® can be freely downloaded.
Last updated on 6 March 2001
Capital Finance Review
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