Rate Support Grant

Rate Support Grant

Direct grants made by the British government to local councils. Rate support grants were made between 1967 and 1990 because local taxation was not considered sufficient to pay for governance. During the Thatcher premiership, these grants were cut for councils thought to be overspending. See also: Rate-capping.
References in periodicals archive ?
If Conservative politicians want to bring billions of pounds to the region they should put it back where it used to be - in the rate support grant formulas."
This in turn can lead to a drop in our rate support grant and ultimately less money to spend on service provision.
He said finances were already under pressure due to an inadequate Rate Support Grant from the Welsh Assembly.
But the employment department insisted today that councils were NOT being instructed to pay white collar workers rises which would break the limit -and said that if pay limits were breached, councils could be penalised by .having some rate support grant withheld.
He said that the proposed three per cent cut in rate support grant would lead to unavoidable rate rises and further cuts in services.
But the final Rate Support Grant (RSG) award announced by the Government this week has a bearing on the level of council tax and the rise could now be fixed at 4.9pc.
Arranging the rate support grant, policing the council tax, and setting the uniform business rate ought to lie with the Treasury, where the background control it has always exerted can be exposed and thus made accountable.
WHILE the much-criticised local authorities are not totally blameless for sharp rises in council tax, the primary cause is the drastic cuts in Rate Support Grant imposed by successive Westminster governments.
But, from 2020, the council's finances potentially fall off a cliff with the end of Rate Support Grant from the Government.
Only 12% of their grant is required to be made up from Council Tax with 19% from Rate Support Grant, 44% 'other grants' and 25% in fees and charges.