Consultation Responses

The Formula Grant Distribution System was last reviewed before the 2006-07 local government finance settlement. This three year settlement will run from 2008-09 to 2010-11 inclusive, and the consultation paper provided the basis for a full consultation on options for grant distribution changes that could be introduced from the 2008-09 settlement onwards.

The system divides up the finite pot of available grant (which is determined in the spending reviews) between all local authorities in England. The system considers local authorities' individual circumstances, their needs and their potential to raise resources locally, relative to all other councils.

The grant distribution formulae take account of an authority’s relative need by considering a number of factors which appear to explain variations in the cost of providing services. The Government were seeking views on which of the options presented here in the consultation should go to updating and modifying the grant distribution system, also welcoming any other proposals.

Please note, r.e. section on concessionary fares, Department for Transport published a separate consultation on specific grant options for concessionary fares “National bus travel concession 2008 - consultation on funding distribution (655 kb)“, to which the Association will be responding.

View ANEC Final response to LG Finance settlement
View Final Appendices - Response to LG Finance Settlement