Why predictability and stability are important 4.1 The opinion survey asked authorities to rank the three most important characteristics of the local government finance system. Only fairness was mentioned more often. The Review Group has agreed that better medium term planning is desirable in itself, regardless of whether or not plans play a role in grant distribution. The research into current planning processes by IPF Ltd. suggests that improved forecasts of future resources is an important issue in enabling more effective planning.
Stability provides a means of managing changes in grant distribution.
Limits to grant changes provide a mechanism that enables changes in grant to be accommodated over a period of time, reducing any disruption during transition. This can provide reassurance when managing change in the grant distribution system. The stability of grant can also make changes in services that are due to local priorities and performance, rather than changes in grant, more apparent to the general public. There is significant dissatisfaction with the current system. In recent years, damping arrangements have been announced to authorities at the same time as announcing the annual settlement.