The government announced that local authorities will be given greater freedom over the use of investment funds in 2003-04.
Source: Press release 10.12.02, Office of the Deputy Prime Minister (020 7944 3000)
Links: Press release
Date: 2002-Dec
The government announced provisional spending allocations to local authorities in England for 2003-04. It said there will be a minimum increase of 3 per cent for each authority (3.5 per cent for those with education and social services responsibilities). Average grant increases will be 6 per cent for authorities with education and social services responsibilities, 4.2 per cent for police and metropolitan fire authorities, and 7.5 per cent for shire district councils. The grants were made under a new distribution system (based on a revised assessment of local needs), which was reportedly attacked by some Conservative-run councils.
Source: Draft Local Government Finance Report (England) 2003/2004, Office of the Deputy Prime Minister (020 7944 3000) | House of Commons Hansard, Debate 5.12.02, columns 1065-1084, TSO (0870 600 5522)
Links: Draft report (pdf) | Consultation paper (pdf) | Links to tables (Excel/pdf) | Hansard | Guardian report
See also: Journal of Social Policy Volume 31/3, Digest 123, paragraph 10.5
Date: 2002-Dec
The government announced that it is dropping plans to merge revenue support grant with national non-domestic rates. (This followed opposition from local councils.)
Source: The Government s Response to the Transport, Local Government and Regional Affairs Committee s Report on the Draft Local Government Bill, Cm 5638, Office of the Deputy Prime Minister, TSO (0870 600 5522)
Links: Response (pdf) | LGA press release
Date: 2002-Nov
The government announced that councils will in future be able to keep new business rate income resulting from the setting up of new businesses in their area. (Currently, the national non-domestic rate is set and pooled nationally.)
Source: Steering a Steady Course - Delivering stability, enterprise and fairness in an uncertain world: Pre-Budget Report November 2002, Cm 5664, HM Treasury, TSO (0870 600 5522)
Links: Report | LGA press release
Date: 2002-Nov
The Local Government Association pressed for urgent action on government plans to review the balance between central and local funding for local councils, saying that the restoration of an adequate local tax base is critical to the sustainability of local financial autonomy and local democracy.
Source: LGA Response to Formula Grant Distribution Consultation Paper, Local Government Association (020 7664 3000)
Links: Response (pdf) | Press release | Consultation Paper
Date: 2002-Oct
Following consultation, the government ended detailed central prescription of what information local councils must provide with council tax bills.
Source: Press release 29.8.02, Office of the Deputy Prime Minister (020 7944 3000)
Links: Press release
Date: 2002-Aug
Options for a 'fairer, simpler, more intelligible and more stable' system of distributing grant to local authorities in England were published for consultation.
Source: Formula Grant Distribution: A Consultation Paper, Office of the Deputy Prime Minister (01709 891318)
Links: Consultation Paper | ODPM press release | DfES press release
See also: Journal of Social Policy Volume 30/2, Digest 118, paragraph 3.1
Date: 2002-Jul
Under the 2002 Spending Review, spending on local government services will rise on average by 3.9 per cent in real terms over the three years to 2005-06. There will be a 'reward grant' of 635 million for authorities which achieve targets under local public service agreements.
Source: Opportunity and Security for All: Investing in an Enterprising, Fairer Britain: New Public Spending Plans 2003-2006, White Paper Cm 5570, HM Treasury, TSO (0870 600 5522)
Links: White Paper | Treasury press release | ODPM press release
Date: 2002-Jul
English councils collected 96.1 per cent of collectable taxes in 2001-02, up slightly.
Source: Press release 11.6.02, Office of the Deputy Prime Minister (020 7944 3000)
Links: Press release
See also: Journal of Social Policy Volume 31/4, Digest 124 (paragraph 10.4)
Date: 2002-Jun