Jumat, 09 Desember 2011

Formula Grant Revealed


Below is the Medway Council formula grant settlement.

For anoraks like myself, probably John Ward, and a few others this figure is probably the most important you will see... and actually raises temperatures across the senior officer team.

Initial thoughts;
  • Government has included the Council Tax Grant with the formula grant which is highly disingenuous. Removing this grant the figure is actually where the Medium Term Financial Plan predicted which is good news for the Council... (though im sure better news would have been more money)
  • Floor damping still continues despite the election of a Conservative Government in May 2010 (see Tory hypocrisy on this issue here, here, here and here). This was a major campaign issue under the Conservatives; now under their own government are strangely silent
  • Councillor Jarrett has also raised the prospect of a 5.1% rise in Council tax for the 2013/14 budget year. Though not relevant to the below, the fact the Council Tax Grant has remained flat since 2011 means that after inflation Medway may be signficantly out of pocket by 2013/14. Jarrett is warning the Department no doubt of the political risk. The department has continued to 'lock' all Council tax increases at 3.5% so Councillor Jarrett may have to call a referendum, should this lock be repeated next year. Labour will no doubt keep an eye
  • Coupled with Medway Conservative deficits in revenue budget (£5.1m) and capital budget (£2.8m) all eyes on our benches will be on Q3 forecasts. My question at last O&S on this regard shows there may be some light here. Interesting also the budget assumptions include reductions in adult & care spend for 2011/12; the consultation exercise it seems concluded?
  • The Department for Local Government has also published a disingenuous table on reductions in 'spending capacity' for local authorities rather then the below. Details found here show Medway has seen a 3.1% cut, £6.36m or the equivalent of £57.46 for every household in Medway. The Tories have form here on spinning the truth.

2012-13 Settlement


Adjusted 2011-12 Formula Grant

(£) 85,401,992


Revenue Support Grant

(£) 1,535,423


Redistributed Business Rates


(£) 79,207,755


Principal Formula Police Grant (£)


_________________


Formula Grant

(£) 80,743,179


Grants Rolled In Using Tailored Distribution

(£) 7,963,183


Relative Needs Amount

(£) 65,109,749


Relative Resource Amount

(£) -24,183,997


Central Allocation

(£) 31,690,849


Principal Formula Police Grant (£)


Floor Damping

(£) -2,299,678


Top-Up to Avoid Losers From Additional £10 million


Council Tax Freeze Compensation £2,463,073

_________________

Formula Grant (£) 80,743,179

Transition Grant (£) 0

2012 sub-national population projection (number of people) 257,565

2012 tax base projection (band-D equivalents) 90,100



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