(a) a district council's wealth means its share of the Northern Ireland gross penny rate product, as calculated in accordance with this Schedule;

(b) a district council's needs means its share of the Northern Ireland adjusted population (including the additional needs of a district council) as calculated in accordance with this Schedule.

     2. The formula -

(a) to determine a district council's entitlement to grant -



	Wealth						Needs
{	District council gross penny rate product		}			{	District council home population adjusted	}
{		× 100	}	−		{		× 100	}	= Surplus or negative variance
{	Northern Ireland gross penny rate product		}			{	Northern Ireland home population adjusted	}



(b) to calculate the proportion of grant payable to a district council, the total of negative variances shall be calculated and each district council's negative variance (if any) expressed as a percentage of the total -



District council's negative variance
	= percentage allocation of total grant
Total of district councils' negative variances

(a) deprivation;

(b) an influx of additional population; and

(c) sparsity.

     4. Measures, weighted in accordance with paragraph 6, to the extent specified in paragraph 5(1), which shall be applied to population data, to adjust for -

(a) deprivation, are -


(i) income deprivation scores; and

(ii) employment deprivation scores and domestic net annual values;



(b) an influx of additional population, are -



(i) tourist bed-nights; and

(ii) travel to work data;



(c) sparsity, are -



(i) population density; and

(ii) private household data.

Extent of adjustment
     5.  - (1) For the purposes of paragraph 4, the extent of adjustment made to the population of a local government district shall be in the same proportion as the total Northern Ireland expenditure on each key service relative to specified needs is to the total Northern Ireland expenditure.

    (2) The key services to which sub-paragraph (1) relates are -

(a) community services;

(b) economic development;

(c) refuse collection;

(d) street cleansing; and

(e) tourism.

Population Adjustment Methodology
     6. The Department shall adjust population to address -

(a) deprivation in a local government district, by taking the following steps -


(i) application of the employment scores with a 100 percent weighting, making an adjustment of the proportion that community services expenditure is to total expenditure;

(ii) application of the employment scores with a 50 percent weighting and domestic net annual values with a 50 percent weighting, making an adjustment for each of the proportion that economic development expenditure is to total expenditure;

(iii) application of the income scores with a 50 percent weighting, making an adjustment of the proportion that tourism expenditure is to total expenditure;



(b) an influx of additional population into a local government district, by taking the following steps -



(i) application of tourist bed-nights factors with a 50 percent weighting, making an adjustment of the proportion that tourism expenditure is to total expenditure;

(ii) application of tourist bed-nights factors with a 50 percent weighting and travel to work factors with a 50 percent weighting, making an adjustment of the proportion that street-cleansing expenditure is to total expenditure; and



(c) sparsity in a local government district, by taking the following step -

application of mid-year population density data with a 25 percent weighting and private household data with a 75 percent weighting, making an adjustment of the proportion that refuse collection expenditure is to total expenditure.

     7. The total adjustment which the Department shall make to the home population of a local government district shall be the sum of the results, which may be positive or negative, of the adjustments made in accordance with paragraphs 6(a), 6(b) and 6(c).

(a) the Department to use data in the formula, based on the latest information available to it in the financial year ending on 31st March 2003 and on 31st March in each third successive financial year thereafter, (Regulation 4); and

(b) district councils to provide certain details of expenditure for each financial year, by 31st July of the financial year immediately following that year, (Regulation 5).

The Northern Ireland Multiple Deprivation Measure (ISBN 1 899203 43 5) is available from The Stationery Office (TSO), 16 Arthur Street, Belfast, BT1 4GD