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Analysis Published 20 Nov 2025 Ministry of Housing, Communities and Local Government ↗ View on GOV.UK

C: Technical Annex on Proposed Area Cost Adjustment (ACA) Equations

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Equation 1: Proposed regression specification for the Rates Cost Adjustment (RCA)

Where:

Equation 2: Proposed regression specification for the Labour Cost Adjustment (LCA)

Equation 3: Proposed calculation of the final ACA with the Remoteness Adjustment for Local Authority ‘i’

Where:

And, for Equation 3: