Equalisation of local authority central government grants

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Equalisation of local authority central government grants

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A requirement for the equalisation of local authority grants based strictly on the head of population. For example there is a disparity between the central government grant paid to different London councils. The annual budget for some East London boroughs is made up of two-thirds grants from central government and the remainder is made up from Council tax revenues. Conversely, the opposite is the case at Kingston where about a third comes from central government and the bulk comes from local residents. This means that Kingston residents are taxed at a higher amount because the council receives a lower subsidy.

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