Local Government Finance

Part of the debate – in the House of Commons at 4:08 pm on 5 February 2004.

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Photo of Nick Raynsford Nick Raynsford Minister of State (Office of the Deputy Prime Minister) (Local and Regional Government) 4:08, 5 February 2004

I am answering a question—I shall give way to the hon. Gentleman in a moment.

Six authorities received no significant grant increase as a result of the extra £340 million, but that was due to the specific arrangement for supporting authorities with education responsibilities, which would not have had sufficient grant to meet the passporting requirement without an uplift. In the original provisional settlement announced in November, that uplift took their entitlement above the level of the new floor brought in after the additional payment of £340 million from the pre-Budget report statement. They had thus already received an uplift that took them above the level that they would have reached with the additional payment. I realise that sounds complicated, but the issue is complicated and I hope that my hon. Friend Mr. Foster will see that that is the reason for what might otherwise appear to be a slightly unfair outcome.