Local authorities England are studying the fine print of the Government’s proposed reforms to the way formula grant is paid from 2011/12.
The DCLG plans to overhaul the weight given to labour costs within the ‘area costs adjustment,’ designed to reflect variations in the costs of delivering services. It says the current estimate that 60% of the cost of delivering highway maintenance goes on staff was based on “judgement”. It says that company accounts of the labour...
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