Department for Communities and Local Government - Local Government Settlement 2010/11 - Capital Grants
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2010-11 Local Government Settlement
Capital Support to Local Authorities

Central Government provides capital support to local government through either: Supported Capital Expenditure (SCE); or through the Private Finance Initiative (PFI). More information on PFI can be found at:

http://www.communities.gov.uk/localgovernment/localgovernmentfinance/pupprivatepartnership/centralgovernment/

Supported Capital Expenditure (SCE) can be funded in two ways

  • through revenue support for capital borrowing (SCE (R)) which is non-ringfenced and paid to authorities as a part of the Formula Grant settlement; or
  • capital grants (SCE(C)) which can either be ringfenced or non-ringfenced.

Central Government also provides capital support to the local areas via other bodies and details of these grants are not included in this note.

The Comprehensive Spending Review (CSR) 2007 was the first time that capital funding allocations were announced alongside a three year Local Government Financial Settlement. This is the third year of the CSR 2007, and we are now able to update the information on capital grants for the 2010-11 financial year.

As part of the Chancellor of the Exchequer’s Pre Budget Report on 24th November 2008, it was announced that £3 billion of capital expenditure on schools, transport and homes would be brought forward from 2010-11, to help support the economy. As a consequence, some of the capital grant figures published as part of the three-year settlement have changed.

A number of capital grant programmes are currently under review, and we are unable to provide full details or updates of allocations at this time. Where this is the case, it has been highlighted on the summary table.

The bringing forward of capital spending applied to Capital Grants (SCE(C)) only. The Supported Borrowing SCE(R) element of Formula Grant has not changed as part of the three-year settlement.

Local Authorities will directly receive over £22 billion over the three years from 2008-09 to 2010-11. A summary table showing all capital grant programmes can be found below, and details of individual local authority allocations are included where possible. However, a number of grant programmes distribute grant on the basis of bids, as reward grants, or using data which will only become available in-year, therefore we are unable to give access to all grant allocations at the time of the settlement. Government Departments/programme teams will inform local authorities of individual allocations as they become available.

Single Capital Pot

Non-ringfenced capital support falls within the Single Capital Pot (SCP). This is a virtual pot and a generic term used to describe non-ringfenced capital grants and includes SCE(R)s.

Asset management

As part of the 2007 Comprehensive Spending Review, Communities and Local Government was asked to produce an asset management strategy for Local Government to emphasise the importance of good asset management at local authority level. The strategy was published in February 2008 and is available on the Department’s website.

http://www.communities.gov.uk/publications/localgovernment/assetmanagement

Following on from this, the Department commissioned RICS to produced a series of local authority asset management best practice leaflets, which were published in July 2009. These are intended to help local authorities in achieving the best results with their assets. These leaflets can be accessed from the RICS website.

It is for local authorities to decide how to make best use of their assets, including decisions about the sales of assets. Good strategic asset management enables local authorities to align their limited resources with local priorities and to improve the delivery of public services.

List of Capital Grants and links to allocations where available

DCSF

BIS
  • Adult Safeguarded Learning (ASL)

DH
  • Mental Health (MS Excel 62kb)
  • Social Care (MS Excel 83kb)
  • Extracare Housing Grant
  • Infrastructure Support (Bid-based grant for 2010-11)
  • AIDS/HIV (Allocations based upon in-year caseload data)
  • Common Assessment Framework (Bid-based grant; allocations not yet available)
  • Social Care IT Infrastructure (MS Excel 88kb)

DfT

DEFRA

HO

CLG
  • Disabled Facilities Grant (allocations not yet available)
  • FRS Capital Grant (Adobe Acrobat 23kb)
  • Gypsy and Traveller Site Grant (bid based grant; allocations not yet available)
  • Homelessness
  • Housing Market Renewal
  • Local Enterprise Growth Initiative (MS Excel 25kb)
  • Housing and Planning Delivery Grant (position currently being reviewed)
  • Private Sector Renewal Grant
  • The Growth Fund (Adobe Acrobat 13kb)

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Last updated on 22 January 2010
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