BS1033 Local Government

1
BS1033 Local Government Continuity and Change

• 3. Local Authority finance

2
BS1033 Local Government Continuity and
Change3. Local Authority finance

• Some figures (1997)
• Revenue Capital
• Education, libraries 33 14
• Housing 16 38
• Personal social services 15 3
• Fire,police,probation 13 3
• Environmental 7 17
• Transport 5 18

3
BS1033 Local Government Continuity and
Change3. Local Authority finance

• Revenue Support Grant
• Needs Assessment (Standard Spending Assessment)
• -
• (Business rate x. local population
• Council tax x local population)

4
BS1033 Local Government Continuity and
Change3. Local Authority finance

• Sources of funds (Revenues)
• Central Government
• Business rates 18
• Revenue Support 26
• Grants 25
• Local Government
• Council Tax 12
• Charges (rents), asset sales 18

5
BS1033 Local Government Continuity and
Change3. Local Authority finance

• Council Tax (and rates)
• Cheap to administer, difficult to evade, cheap
  to collect
• - Lump sum, annual rental value may be
  distorted, do not take into account ability to
  pay, some pay whilst others benefit

6
BS1033 Local Government Continuity and
Change3. Local Authority finance

• New Labour
• Abolition of crude and universal capping (but
  reserve powers)
• Best Value (both quality and quantity)
• Secure continuous improvement (efficiency,
  economy, effectiveness)
• Private Finance Initiative (for schools in
  particular)
• - Design Build Finance Operate
• - Joint ventures)