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FORSYTH FACES COURT ACTION

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Scottish secretary Michael Forsyth is being challenged in court by Midlothian DC over claims that his grant formula...
Scottish secretary Michael Forsyth is being challenged in court by Midlothian DC over claims that his grant formula is flawed and will cost its council tax payers£2.3 million.

As part of this year's settlement the secretary has retained the effect of three formulae which have failed the established statistical tests for two successive years and, Midlothian argues, should therefore be removed from the system.

Half of the loss is offset by the special Mismatch arrangements for 1996-97, which addressed the differences between spending allocations under the grant distribution formula and historic spending levels, but that still leaves a shortfall of£1.15m which will increase council tax bills by 6%.

Midlothian says it is taking court action to protect residents from an 'unfair increase' in council tax.
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