To ask the Deputy Prime Minister what methodology he used in his calculation that South Bucks District Council is receiving an increase of 3.4 per cent. in its grant for 2004–05.

The Office of the Deputy Prime Minister first calculated the amount of grant authorities would have received in 2003–04 on a like-for-like basis with 2004–05 i.e. the amount that an authority would have received had the transfers in funding and function relating to 2004–05 had occurred a year earlier. More detailed information on the calculation of the adjusted 2003–04 grant amounts can be found on the Office of the Deputy Prime Minister's website at http://www.local.odpm.gov.uk/finance/0405/adipaps.pdf

The results of these calculations for South Bucks were as follows:

Adjusted 2003–04 redistributed business rates—£2,160,712

Adjusted 2003–04 Revenue Support Grant—£304,107

Adjusted 2003–04 Formula Grant—£2,464,819

The amount of grant authorities will receive in 2004–05 was then calculated in accordance with the Local Government Finance Report (England) 2004–05. The results of these calculations for South Bucks were as follows:

2004–05 redistributed business rates—£1,682,020

2004–05 Revenue Support Grant—£868,280

2004–05 Formula Grant—£2,550,300

The change in grant between 2004–05 and 2003–04 on a like-for-like basis was then calculated as follows:

2004–05 Formula Grant—Adjusted £2003–04 Formula Grant

=£2,550,300–£2,464,819

£85,481 or 3.468 per cent.