Negative Subsidy

Deputy Prime Minister written question – answered on 14th June 2005.

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Photo of Brian Jenkins Brian Jenkins Labour, Tamworth

To ask the Deputy Prime Minister how much was taken in negative subsidy from (a) all councils and (b) Tamworth borough council in each of the last two years.

Photo of Yvette Cooper Yvette Cooper Minister of State (Office of the Deputy Prime Minister) (Housing and Planning)

Total negative subsidy in 2004–05 was £620,543,656. The equivalent figure, representing the total negative housing element for 2003–04 was £706,268,335. Negative subsidy generated by some councils is captured so that it can be redistributed to other authorities with an assumed deficit. It is not retained by central Government

Negative subsidy for Tamworth in 2004–05 was £1,205,058. The borough's negative housing element in 2003–04 was £1,242,533.

The definition of negative subsidy was changed by the Local Government Act 2003, which came into force on 1 April 2004. The figures given are directly comparable, though the terminology changed between the financial years.

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