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BYERS BACKTRACKS OVER SHIRES RSG ERROR

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Local government minister Stephen Byers has rushed to correct a mistake in the revenue support grant settlement whi...
Local government minister Stephen Byers has rushed to correct a mistake in the revenue support grant settlement which left 135 district councils ineligible for the minimum grant increase.

He told the House of Commons: 'In the light of representations received by some honourable members and shire districts as part of the consultation on the 2002/3 finance settlement, I shall introduce an alternative baseline for 2001/2.'

The minimum amount district councils receive for 2002/3 was calculated using a comparable baseline figure from 2001/2.

Mr Byers is to re-calculate this figure to rectify an error which meant the majority of districts are due to receive just 1.1% rather than the 2.3% minimum specified by the government.

He said: 'In order to guarantee a minimum 2.3% increase for shire districts I will give each district whichever increase is greater for them - 2.3% on the original baseline or 2.3% on the alternative.'
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