Local authorities fund their expenditure, including expenditure on pay, from a variety of sources, including specific State grants, commercial rates, rents, fees and charges for services and general purpose grants from the local government fund.
I am satisfied that the funding available to local authorities for 2003, which included, on average, an increase of over 6% in general purpose grants, is sufficient to meet the reasonable costs of providing their services this year. The issue of benchmarking costs in 2004, as with all other current expenditure demands, will fall to be dealt with by local authorities in the context of their annual budgetary process. The amount that will be available from the local government fund for 2004 has not yet been determined.
I have not received a request from the County and City Managers Association to meet on the issue of benchmarking. In May the issue was discussed at a meeting with the association. Major issues in relation to local government financing would be an ongoing subject of discussion between my Department and the association.