There are three types of funding available to achieve LAA outcomes:
- area specific funding allocated and distributed direct to the area by a Government Department;
- mainstream funding e.g. NHS, Police and Schools funding
- Non-Departmental Public Bodies (NDPBs) such as Sport England can choose to pool or align money with local funding
Local Public Service Agreements (LPSAs) are now integrated into LAAs and form the reward element. Approximately 12 of the highest priority indicators will be chosen as stretch targets and LSPs will be expected to deliver measurable stretched performance against these priorities over 3 years based on targets negotiated with the regional Government Office. In return they will recieve payment of a reward grant for those targets that are met.
Many 2nd Round LAAs included stretch targets around participation levels in sport.
The LAA Guidance states that the PRG is paid if at least 60% of the stretch target is achieved.
For further details on funding streams and rules go to the ODPM publication Local Area Agreements- Guidance for Round 3 and Refresh of Rounds 1 and 2
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