96 The White Paper, Strong and Prosperous Communities described ABG as an enabler: allowing councils to focus resources on local priorities (Ref. 35). It brings previously ring-fenced grants into a single pot for each council.I ABG is allocated on a three-year basis (Ref. 37) and can be carried across financial years (Ref. 38). The total amount of ABG for 2008 to 2011 is £4 billion.
97 ABG is not new money. It is a local authority grant and the council cabinet must approve spending. Councils decide whether to allow the LSP to influence how all, or part of, ABG is spent. This may lead to some partners' disappointment.
'There is the area based grant. But council colleagues will tell us that most of that is actually already committed to keep existing services going. So there isn't really…any sort of flexibility on how the LSP can particularly influence that.'
Director, third sector
98 Mature partnerships are more likely to agree to share ABG. The Oldham Partnership shares £15 million of ABG across five themes in line with locally agreed priorities.
I A full list of the grants incorporated into ABG is at http://www.communities.gov.uk/localgovernment/localgovernmentfinance/areabasedgrant/