1. REVISED LOCAL GOVERNMENT FINANCE SETTLEMENTS: 2004 05 & 2005 06
2. REDETERMINATION OF REVENUE SUPPORT GRANT FOR 2002 03 & 2003 04
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Finance and Central Services Department
Local Government Finance & Performance Division
Finance Circular No. 2/2004
by e mail The Chief Executive, Scottish Local Authorities copy to: Directors of Finance
Norie Williamson, COSLA | Victoria Quay Edinburgh EH6 6QQ Telephone: 0131-244 7002 Fax: 0131-244 7020 Andrew.Rushworth@scotland.gsi.gov.uk http://www.scotland.gov.uk 23 February 2004 |
Dear Chief Executive
1. REVISED LOCAL GOVERNMENT FINANCE SETTLEMENTS: 2004 05 & 2005 06
2. REDETERMINATION OF REVENUE SUPPORT GRANT FOR 2002 03 & 2003 04
1. The Local Government Finance (Scotland) Order 2004 was debated and approved by the Scottish Parliament on 5 February. This circular provides authorities with a summary of the figures contained in that Order.
2. Finance Circular 6/2003, issued on 17 December 2003, set out the provisional distribution of AEF for 2004 05 and 2005 06. The resulting allocations were approved by Parliament on 5 February 2004, and are summarised in Annex A to this circular (including a breakdown of 2004 05 and 2005 06 allocations). Annex B shows Councils' total AEF for 2004 05 and replaces Annex 3 to Circular 6/2003.
3. Revisions to the 2003 04 allocations were also approved by Parliament. I have therefore also included a reconciliation of the new Order and the previous Order taking account of these revisions as a redetermination for 2003 04 (Annex E).
4. Councils have indicated in the past that it is helpful to have a reconciliation from one circular to the next. In recognition of this, a reconciliation of Circular No. 1/2003 to Circular No. 2/2004 is included in Annex F.
5. Separate advice is being sent to councils' on the funding of the new Supporting People arrangements for housing support services. An element of this funding will be transferred from AEF/RSG in relation to the 5.5% of previous Transitional Housing Benefit funded by councils. Details of the transfer will be confirmed later in the year and will be actioned as a redetermination for 2004 05.
6. The Annexes to this circular are:
Annex A: All Scotland aggregate totals;
Annex B: AEF Calc Sheets for 2004 06;
Annex C: Calculation of the minimum grant increase floor;
Annex D: Estimated payments to each local authority from specific grants;
Annex E: Reconciliation of 2003 04.
Annex F: Reconciliation between Circular No. 1/2003 to No. 2/2004.
7. A separate copy of this circular has been sent by e mail to your Director of Finance and to Norie Williamson at COSLA.
8. Enquiries relating to this circular should be addressed to the following:
General queries (Grant distribution, floor, NDRI)
Irene Little 0131 244 7004
General queries (Expenditure, GAE and AEF Assessment)
Lucy Smith 0131 244 7582
General queries (Capital allocations)
Hilary Pearce 0131 244 7950
Yours sincerely
A J Rushworth
DR A J RUSHWORTH
Head of Local Authority Finance and Constitution Division