Frequently Asked Questions

Question:

How is the Central Government grant calculated?

Answer:

In 2003/04 Central Government introduced a new formula grant distribution system “Formula Spending Share (FSS)”. The FSS is based on a complex statistical assessment by Central Government of the appropriate level of budget requirement for each local authority.

It is the FSS that determines the amount of Central Government funding of local spending and the level that is expected to be funded locally through council tax. In 2003/04 the Government contribution to the appropriate level of budget requirement reduced from 68% to 63% and therefore an additional 5% was expected to be funded locally through council tax.

Contact for further information: Principal Financial Policy Manager. Tel: 01432 261865
Email: smc@herefordshire.gov.uk

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Last Updated: 04 January 05

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