04/11: London Borough Grants Scheme - 2011/12 Payments and Supplementary Contribution

  • By London Councils

I am writing to advise you of changes in the budget for the London Boroughs Grants Scheme following completion of the review and the decisions made by Leaders’ Committee at its meeting held on 10 May 2011.

Enclosed with this letter is a schedule of Borough Contributions required from each constituent council in respect of the levy under Section 48 Local Government Act 1985 London Boroughs Grants Scheme (the Scheme) and the supplementary charge required as a result of the Leaders’ Committee decision on 10 May 2011, in accordance with the London Councils Agreement dated 13 December 2001 (as amended).

On 14 December, 2010, Leaders’ Committee approved an overall budget for the Scheme of £17.691 million. This budget was subsequently approved by two-thirds of constituent councils as required by Section 48 Local Government Act 1985. In accordance with the Levying Bodies (General) Regulations 1992, the City of London Corporation, as designated council for the Scheme, has agreed a levy of £13,241,000 for 2011/12.  The decision of Leaders’ Committee was subject to judicial review proceedings. While the High Court did not quash the approved budget, it required a further consultation to give further consideration to the equalities effects of the proposed changes to the Scheme.

As a result of the further consultation, Grants Committee recommended, and Leaders’ Committee agreed at their meeting on 10 May, to increase the costs of the Scheme.

The overall level of expenditure for 2011/12 is therefore, £20.767 million.

Please download the full circular below...

John O'Brien

Chief executive