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［CLP（2003.10.16）提出資料、議事録（出典：LGAホームページ）］
CLP (2003) 5a
Finance Paper
A discussion paper by HMT and ODPM
1. This paper consists of two parts. The first sets the scene for Spending Review 2004, outlining this year's process and the major issues which are associated with it. The second covers the forthcoming local government settlement, including schools funding.
Spending Review 2004
2. The 2004 Spending Review takes place in the context of a tighter fiscal situation than the last Spending Review and will be conducted against the background of increasing global economic uncertainty. For that reason, SR2004 will set spending plans for 2006-07 and 2007-08 but agreed spending plans for 2005-06 will not be revisited. The focus over the next year should remain on delivering the Government's programme of existing PSA targets and public service reforms.
3. Efficiency improvements in public services are essential if the Government is to be able to continue delivering improved services against a backdrop of more constrained resources. Whilst we continue to support the step change in public spending announced in the 2002 Spending Review there is a need for all partners to focus on achieving efficient and effective delivery of public services.
4. Therefore, the Efficiency Review, which was announced in the Budget 2003, will provide essential evidence to feed into the Spending Review. The review will be strongly evidence based and will examine local government services as well as central government. Preliminary work was undertaken in the summer and Peter Gershon has now agreed to take the review forward. He is currently setting up the team and developing ideas and will be consulting across the public sector in the weeks ahead, inviting contributions from local government.
5. As well as the Efficiency review, and recognizing that local government is of critical importance to the Government's plans for improving public services delivery, we are committed to pursuing our agenda of localism through the Spending Review. It is vital that we continue the progress made in SR2002 in creating a coherent settlement for local government that delivers consistently high-quality local services while also allowing local authorities the freedom to deliver local priorities. To further that end, a number of reviews are taking place prior to the Spending Review, as announced by the Chancellor in Budget 2003:
・The Devolved Decision Making review aims to establish the importance of a devolved approach, and identify reforms to increase local autonomy in order to enable continuous improvements in public service delivery performance. The four principles of public service reform that the Government has agreed include creating maximum local flexibility and discretion to innovate. Building on that, the review is working to develop a clear rationale for devolution of decision-making and, in a joint project between HMT and the Prime Minister's Delivery Unit, to develop improvements in setting and delivering targets to improve public services. The review will be working closely with stakeholders such as LGA and will feed into SR2004
・A further Voluntary and Community Sector (VCS) Review will take place. This will sustain the momentum from the cross cutting review of the role of the VCS in service delivery which was carried out in SR2002. That review concluded that we need to work more effectively with the VCS - on funding, on capacity building, and importantly on developing relationships - if we are fully to realise the benefit that the VCS can bring to public service delivery and communities at local level. The review this year will examine both progress on implementation and what more we can do. It is vital that this happens at a local level as well as central level. We have therefore asked Neil Kingham, Director General of Local Government at ODPM, to chair the review, and we will be working closely with local government and agencies to see how we can take forward this shared agenda.
・There will also be reviews carried out on Child Poverty and Childcare.
6. Prior to the last spending review, ODMP and HMT carried out a local services review which saw Government departments and local government stakeholders working together to address key issues of public service delivery, as they relate to local government, to ensure the settlement addressed key pressures and delivered a coherent settlement across local government. We recognize the value of such a review and will be considering developing a similar process for SR2004.
7. Government spending has risen strongly since 1997. The SR2002 settlement provided for an average real increase of 4.2% per year for the Office of the Deputy Prime Minister's local government programme. It also boosted capital through an average real increase of 10.7% p.a. over the three years to 2005-06.
8. SR2002 also provided resources for increased grant to local government. In 2003-04, The Local Government Financial Settlement gave a real terms rise of 5.9% in formula grant, other grants bringing the total to 8%. Under the new Formula Grant Distribution System (FGDS) much more is targeted to those authorities with the greatest need, giving many up to 8 per cent increases in formula grant. Moreover, all authorities gained, with above inflation increases guaranteed for the first time - a minimum 3.5% for all education and social services authorities, and a 3% minimum for all others.
9. We are committed to meeting the needs of local government and pursuing our localism agenda, delivering public services and supporting the development of flexible local solutions through greater freedoms for local authorities. Although this Spending Review will be tighter than the previous one, we can nonetheless provide a coherent settlement for local government. However, the challenge of financing the needs of local government cannot be decoupled from the need for all partners to work together to reform the delivery of public services to make it as efficient and effective as possible. The delivery system must also provide value for council taxpayers; ministers are clear that further rises in council tax of the size imposed this year would be unsustainable.
10. An indicative timetable for the Spending Review process, with some key milestones, is as follows:
i. Departments should have reached agreement on the broad coverage of proposed PSA targets by the end of December.
ii. The Budget 2003 reviews should have reached substantive conclusions by January / February in time to feed into Departmental Submissions.
iii. Departments will be completing their submissions and draft PSAs around April / May of next year, including technical notes and proposals for actual PSA target levels.
iv. The Review is likely to conclude in July 2004.
LOCAL AUTHORITY FINANCE SETTLEMENT 2004/05 AND FUNDING OF SCHOOLS IN THE YEARS 2004-05 AND 2005-06.
Local Authority Finance Settlement 2004/05
1. The provisional local authority finance settlement 2004/05 will be announced in Mid November. Local authorities will already know that the spending plans set out in SR2002 provide for an increase in general grant next year of 4.9% compared to an increase of 5.9% in 2003/04, reflecting the spending patterns of the bids made in SR2002. The general grant increase for 2005/06 is 6.9%. Compared to years 1 and 3 of SR2002, therefore, funding in year 2 , though well above inflation, is relatively tight. The Government and the LGA are agreed on the need to avoid further unnecessary constraints on councils, for example through excessive use of ring-fencing.
2. The precise increase in general grant will depend on changes agreed since the spending review. For example, it is proposed that there will be a further transfer out of general grant to fund the revenue consequences of Private Finance Initiatives. Local authority representatives have been kept informed of these changes through regular meetings at official level in order to provide better and earlier information to local authorities.
3. Decisions on the level of floors and ceilings will need to reflect the lower level of grant increase generally for councils provided by the spending review.
4. The Government will be looking to ensure as much information on other grants for individual authorities is available to enable councils to take as full a view of the impact on their budgets of the Government's proposals for revenue spending in 2004/05.
5. The Government has, of course, indicated that it will not be using the capping powers this year. However, the Government is prepared to use the targeted capping powers in 2004/05, and in exceptional circumstances the Government has not ruled out capping authorities categorised "excellent" or "good" in current and future Comprehensive Perfomance Assessments.
6. The Government is aware of the disappointment this announcement caused to local government. It is certainly the ease that while SSA totals in SR2002 were calculated so that they could be matched through an increase in council tax of just under 5%, councils often spend above SSA totals on services, which will require increases in council tax above those assumed in SR2002. These are, of course, multiplied through the gearing effect. That said Ministers' clear view is that further increases in council tax of the size seen in 2003/04 would be unsustainable.
Schools funding
7. The funding of schools is a joint responsibility of central and local government. With rising funding from central government in recent years, local education authorities (LEAs) have played a key role in delivering improvements in educational attainment. With significant central investment they have tackled the backlog of maintenance in school buildings. Schools have been able to employ increasing numbers of teachers and support staff. And LEAs, central Government and schools have been working together to improve teachers' workload and working arrangements. Both Government and local authorities are aware that some schools have experienced real difficulties with this year's budget allocations.
Changes needed to school funding system
8. Guiding principles for the next two years are:
i) Every school should receive at least a guaranteed per pupil increase in its funding for each year.
Every school will receive at least a minimum increase in its funding per pupil implemented through Fair Funding Regulations, placing each LEA under a direct obligation to provide for such a minimum guarantee. The minimum will be based upon the average cost pressures for 2004-05 and 2005-06, and local authority and Government officials have been discussing the analysis and rationale behind these calculations. The Government is consulting further on how that guarantee will work in detail. An announcement is expected soon.
Some schools have found it necessary, this year, to spend from their reserves or devolved formula capital allocations. Others have set deficit budgets by agreement with their LEAs. Of course schools and LEAs have the primary responsibility to manage the on-going consequences of such decisions including maintaining sound financial management and balancing budgets. The changes the Government is introducing for 2004-05 and 2005-06 will help them to do so. However, Ministers recognize that there may be some eases where doing so could be beyond the capacity of individual schools and LEAs. In those few cases, DfES have made clear that they will be prepared to consider limited, transitional support to avoid damage to children's education, where that is part of a locally agreed recovery plan between the LEA, schools and the Department. DfES shall discuss with headteachers and local authority representatives how best to provide such support.
The Schools Formula Spending Share (SFSS) in each authority will be set at a level which will cover the school level guarantee and a small amount of headroom beyond that. Further, each local authority will receive an increase in Formula Grant at least as large as its 'passporting' target, when changes in function and financing are taken into account.
ii) Central and local Government should achieve earlier announcements of the financial allocations to schools, so that heads have greater certainty and time to plan;
The provisional local government settlement will be announced in the middle of November. The Government will make earlier announcements on Standards Fund distribution, before the announcement of the provisional local government finance settlement.
iii) Government should provide greater stability through a two year settlement on teachers' pay, ring-fenced grants and the guaranteed per pupil increase in schools' funding;
The Secretary of State has made this case to the School Teachers' Review Body and we await their recommendations. As a key element in providing greater stability, the Government will maintain, and inflation-proof, the support the Standards Fund provides to schools at its 2003-04 levels.
iv) greater transparency in the overall system of funding for schools; and
v) reforms agreed with the key workforce partners as reflected in the National Agreement on raising standards and tackling workload should be sustained.
8. Barring wholly exceptional circumstances LEAs should 'passport' the full increase in their SFSS into a matching increase in the Schools Budget. Spending on central items within the Schools Budget should rise no faster than spending on the Individual Schools Budget. The Government will consult on how this is delivered.
9. The Government will be monitoring the impact of these changes with a view to considering whether further changes are needed for 2005-06.
ODPM/HMT
October 2003
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