The formula recently caused a storm of protest when it emerged that some police authorities faced up to 17% budget cuts (LGC, 23 September).
Controversy centred on the reliability of data on police activity used in the formula. This tried to use information on lone-parent families, unemployment and the number of council estates to define likely demand for police services.
But the Home Office announced last week that revised proposals similar to the existing formula would be used to limit the extent of change. The main emphasis in the formula will be on existing levels of manpower.
It will operate in the same way as this year's SSA reduction grant which helped councils cope with the overhaul of the grant distribution system.
The scheme will give financial protection to any police authority experiencing a drop in funding of more than 2%. Exemplifications will not be distributed until after the Budget.
The Home Office has said it will continue to develop the formula next year in consultation with the local authority associations.