Contact: Jon Pittam, (01962) 847400; [email protected]

1 Summary

1.1 The Government has issued a number of consultation papers on:

· formula grant distribution

· school funding

· local transport plan

1.2 The Office of the Deputy Prime Minister (ODPM) issued a consultation paper on 19 July 2005 setting out proposed changes to the formulae used in its system for distributing revenue grant to local authorities from 2006/07
(Report A). The closing date for responses to the consultation is
10 October 2005.

1.3 The Department for Education and Skills (DfES) issued a consultation paper on 5 August 2005 on a modified method of distributing the dedicated schools grant in 2006/07 and 2007/08 (Report B). The closing date for responses is
30 September 2005.

1.4 The Department for Transport is consulting on proposals to change the way that financial allocations are calculated for local transport plans (Report C).

1.5 The following decisions are sought:

· that the County Treasurer, in conjunction with the Leader, responds to the Government's consultations as set out in the report's appendices subject to the addition of introductory paragraphs for each response and some amendments to reflect the Cabinet's strong concerns.

· that the responses be copied to Hampshire MPs and other interested parties to lobby on behalf of the County Council's position, especially the potential further loss of Government grant away from Hampshire to urban areas in 2006/07.

2 Reason(s)

2.1 The County Council needs to safeguard its financial position and the interests of council tax payers in Hampshire by influencing the Government in reaching its decisions on changes to the revenue grant distribution system.

2.2 Achieving an equitable grant distribution system will support all the aims of the Corporate Strategy by providing the financial resources needed for their delivery.

2.3 Responses to the other consultations are also required to ensure practical changes and to safeguard the funding of Hampshire's schools and local transport.

3 Other options considered and rejected:

3.1 Not applicable.

4 Conflicts of interest declared by the decision maker or other Executive member consulted

4.1 Not applicable.

5 Dispensation granted by the Standards Committee

5.1 Not applicable.

6 Reason(s) for the matter being dealt with if urgent

Not applicable

Approved by: ................................... Date: ...............................

Councillor T K Thornber, CBE