A selection of images representing communities.
Area Based Grant is a general grant allocated directly to local authorities as additional revenue funding to areas. It is allocated according to specific policy criteria rather than general formulae. Local authorities are free to use the all of this non-ringfenced funding as they see fit to support the delivery of local, regional and national priorities in their areas.
Government has significantly increased local authorities' flexibility over the use of their mainstream resources by moving over £4bn of grants into the new non-ringfenced Area Based Grant (ABG). This will minimise the barriers to local authorities using their mainstream resources to support local priorities where they wish to do so. From 1 April 2008, ABG will be allocated on a three year basis to maximise stability and certainty.
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