Meeting documents

Formula Grant Consultation Paper - Exemplification effects of options on B&NES

Appendix 2

Option

Description of Option

Change in Grant / FSS

Impact of option £m

Best £m

Worst £m

%

Education

SCLT1

Total transfer out of schools spend 2005/06 - £95m

Grant

1.7920

1.7920

6.1%

SCLT2

Customised Damping

Grant

1.0370

1.0370

3.6%

Education Non Schools

EDU1

Update Sparsity data using 2001 Census

FSS

-0.0810

-0.0810

-0.1%

EDU2

Removing direct funding of residual college lecturer pensions

FSS

-0.0860

-0.0860

-0.1%

EDU3

Removing Local Education Authority (LEA) damping block

FSS

0.0300

0.0300

0.0%

Social Services - Children

SSC1

New deprivation top up

FSS

-0.5800

-0.5800

-0.6%

SSC2

Foster Cost Option

FSS

-0.1240

-0.1240

-0.1%

SSC3

Use of better indicator data

FSS

-0.1300

-0.1300

-0.1%

Social Services - Elderly

SSE1

Age & Deprivation based on "need for care"

FSS

-0.3230

-0.3230

-0.3%

SSE2

Age & Deprivation based on "small area data"

FSS

0.0130

0.0%

SSE3

Age & Deprivation - "low income adjustment"

FSS

0.1580

0.1580

0.2%

SSE4

Sparsity adjustment based on population 65+

FSS

-0.0300

-0.0300

0.0%

SSE5

Sparsity adjustment based on distance measure

FSS

-0.0070

-0.0070

0.0%

Social Services - Younger Adults

SSA1

Cost of providing younger adult Social Services per 1000 people aged 18-64

FSS

-0.7370

-0.7370

-0.8%

SSA2

No of clients per 1000 inhabitants aged 18-64

FSS

-1.6840

-1.6840

-1.7%

Highways Maintenance

HM1

Moving to 3 Year average traffic flows

FSS

0.0900

0.0900

0.1%

HM2

Updated net in-commuters from 2001 census

FSS

-0.0790

-0.0790

-0.1%

HM3

Adding back lanes to formula

FSS

0.0000

0.0%

EPCS

EPCS1

Update density, sparsity, net in-commuters and country of birth stats - 2001 census

FSS

0.1290

0.1290

0.1%

EPCS2

Re-weighting density, pensioners on income support & incapacity benefit/severe disability allowance individuals with a view to move from half fare to full free fare scheme

FSS

0.7700

0.7700

0.8%

Flood Defence

FD1

Transfer of Critical Ordinary Watercourses (COWs)

FSS

-0.0140

-0.0140

0.0%

Fixed Costs

FC1

Update Fixed Cost Element to £325k from £300k

FSS

-0.0040

-0.0040

0.0%

Capital Financing

CF1

Abolish both interest receipts elements from FSS

FSS

2.6610

2.6610

2.8%

CF2

As CF1 and reduce capital FSS by equivalent amount

FSS

0.3260

0.3260

0.3%

CF3

As CF1 and reduce the non capital FSS by the equivalent amount

FSS

0.6420

0.7%

Area Cost Adjustment (ACA)

ACA1

Labour Cost Adjustment - Expanded data ASHE

FSS

0.2410

0.2410

0.3%

ACA2

Rates Cost Adjustment - Removing Rates Cost Adjustment

FSS

0.0280

0.0280

0.0%

ACA3

Rates Cost Adjustment - Update weightings

FSS

0.0150

0.0150

0.0%

ACA4

Geography - raise lower limit of ACA (only include those areas with higher than average wage cost pressures)

FSS

-1.1940

-1.1940

-1.2%

ACA5

Geography - keep lower limit at the same level

FSS

0.0540

0.0540

0.1%

Resource Equalisation

RE1

Full additional resource equalisation

Grant

-1.4950

-1.4950

-1.4%

RE2

Half additional resource equalisation

Grant

-0.7380

-0.7380

-0.7%

RE3

Full additional resource equalisation & abolish interest receipts

Grant

-0.9540

-0.9%

Floor Damping

DMP1

Abolition of the capital adjustment

Grant

0.0070

0.0%

DMP2

Damping based on tax base

Grant

-0.4540

-0.4540

-0.4%

DMP3

Damping based on basic amount per head

Grant

0.0530

0.0530

0.0%

Total variation possible

4.271

-4.647

FSS

= Formula Spending Share - Government Formula based way of allocating grant to Local Authorities to pay for services

The above list relates to technical options that are proposed in the paper. Shown are the options with the best and worst financial outcomes for this authority. It is also possible that no changes are made to some areas.