IN your article "Have your say on council budget" (January 3) you claim the Government has allowed City of York Council to spend £11 million more next year.
As the Government does not dictate or restrict local authority spending, I assume this figure results from a misunderstanding of the system and I should like to explain the new formula.
The spending review identifies how much is available in total grant for local authorities. The formula spending share (FSS) distributes the available amount to authorities in a way which reflects local pressures in comparison with other areas.
There is an allowance per head with top-ups for local pressures, such as deprivation, labour costs and sparsity.
The FSS does not imply how much should be spent in any area because that is a matter for the local authority.
Authorities, like any other organisation, are responsible for setting efficient budgets to meet local needs.
They are also responsible for setting council tax and with such a good settlement for 2003/4 there should be no good reason for unreasonable rises.
Nick Raynsford, MP,
Minister of State for Local Government and the Regions,
Office of the Deputy Prime Minister,
Whitehall, London.
Updated: 11:30 Friday, January 24, 2003
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