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Spending Review
SR2000/DET
18 July 2000
Funding to modernise local government services to deliver improved schools, better care for the elderly and to help the fight against crime received a boost today with an average annual real terms increase of 3.1 per cent, the Chancellor Gordon Brown announced.
"This settlement is good news for local government," the Deputy Prime Minister, John Prescott said when he welcomed today's announcement. "But it is money for reform.
"We have worked closely with local government to put together a six part package that will get extra money to where it is most needed, reward improved performance, provide more certainty over the next three years and give a huge boost to investment. It is a golden opportunity to make a real difference in the lives of our local communities."
The six part package includes:
1. Standard Spending Assessments - which increase on average by 3.1% per year in real terms over the three years (allowing for changes in responsibility) - are the amount of spending by local government as a whole which the Government is prepared to support through Revenue Support Grant. The plans for 2001-02 to 2003-04 are:
| £ million | 2000-01 | 2001-02 | 2002-03 | 2003-04 |
| Education | 21,332 | 22,513 | 23,863 | 25,261 |
| Personal Social Services | 8,462 | 8,869 | 9,344 | 9,962 |
| Police | 3,350 | 3,650 | 3,839 | 3,995 |
| Fire | 1,393 | 1,463 | 1,521 | 1,583 |
| Highway Maintenance | 1,859 | 1,905 | 1,955 | 2,005 |
| Environmental, Protective and Cultural Services | 8,175 | 8,533 | 8,905 | 9,302 |
| Capital Financing | 1,735 | 1,948 | 2,223 | 2,623 |
| Total Standard Spending Assessments | 46,305 | 48,881 | 51,650 | 54,731 |
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Note 1: All Standard Spending Assessments are for local authorities' revenue spending. Note 2: Figures for 2000-01 have been placed on a comparable basis to 2001-02 by adjusting for transfers made during the 2000 Spending Review reflecting changes of responsibility in 2001-02. Total transfers out of SSAs sum to £473 million. Note 3: Capital Financing figures for 2000-01 include the PFI Special Grant. |
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2. Grant support for spending is provided within the Department of the Environment, Transport and the Regions' local government programme (as Net Aggregate External Finance (AEF)). This programme also covers other activities including the new Neighbourhood Renewal Fund, resources for a new local government on-line initiative to pump-prime electronic delivery of services, and funds to reward authorities who achieve targets within local PSAs. The capital budget figures here are to fund these initiatives - the vast majority of capital investment is provided to local government through other departmental programmes.
| £ million | 2000-01 | 2001-02 | 2002-03 | 2003-04 |
| DETR-LG | ||||
| Total* | 35,353 | 36,801 | 39,241 | 41,855 |
| of which: Resource Budget | 35,306 | 36,745 | 38,965 | 41,529 |
| Capital Budget | 47 | 57 | 277 | 327 |
| including: | ||||
| Net AEF | 34,928 | 36,358 | 38,378 | 40,718 |
| Neighbourhood Renewal Fund | 100 | 300 | 400 | |
| Local Government On-Line | 25 | 135 | 190 | |
| Other Spending | 424 | 318 | 428 | 548 |
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*Departmental Expenditure Limit Note 1: Total DEL, Resource Budget and Net AEF for 2000-01 contain £473 million which has been transferred out for 2001-02 reflecting changes of responsibility in 2001-02. |
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3. Further details of local PSAs and pilot authorities will be announced shortly.
4. For more information, please call the DETR press office on: 020 7944 3042; out of hours: 020 7944 5925/5945 or e-mail: press@detr.gov.uk. Or call Public Enquiries: 020 7944 3000; e-mail contacts:
