Formula Funding of Local Public Services

HC 1502, Fifty-fifth Report of Session 2010-12 - Report, Together with Formal Minutes, Oral and Written Evidence

Author:

House of Commons - Committee of Public Accounts

Publisher:

TSO (The Stationery Office)

Price: £11.00

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The report 'Formula Funding of Local Public Services (HC 1502)' from the Committee of Public Accounts, examines existing approaches to formula funding across government, and the principles that should be carried forward to new arrangements.

Government departments distributed £152 billion, one-fifth of all government spending, to local public bodies in 2011-12 based on the three grants considered:

• Primary Care Trust Allocations

• Dedicated Schools Grant

• The Department for Communities and Local Government's (DCLG) Formula Grant

These distribute funding to local public bodies in a range of sectors, including health, education, local government, police and fire and rescue services. However, the formula funding systems are complex, difficult to understand, and have led to inequitable allocations.

For the Dedicated Schools Grant, based mainly on historical spending patterns, per pupil funding for schools with similar characteristics can vary by as much as 40%. Under the Formula Grant, nearly 20% of authorities received allocations which are more than 10% different from calculated needs.

The priorities accorded to different elements of the formulae are judgements which have a direct impact on the distribution of funds. In some cases the basis for the judgement is guided by authoritative, published independent advice. In other cases, the basis for judgement lacks transparency, and external advice lacks status and influence.

Only 4% of respondents to DCLG's consultation supported the current version of the model used to calculate Formula Grant. Some of the data used by departments in calculating relative needs is inaccurate and out of date

Current reviews of formula funding provide opportunities to address the weaknesses identified in this report.

Extent	39 pages	ISBN	9780215038685
Size	A4	Price	£11.00
Format	Paperback	Published	16 Nov 2011
Availability	Colour copy: 3 - 5 days	Delivery	Delivery options and charges