Central grants and local spending in Britain: a reappraisal of the post-layfield period
By: Midwinter, Arthur.
Contributor(s): Carmichael, Paul.
Material type:
ArticlePublisher: 2002Description: p.49-73.Subject(s): Local government - Great Britain | Local government
In:
Local Government StudiesSummary: Central grants have long been regarded as key financial instruments for controlling and directing local spending in Britain, and the drift to centralisation of funding has increased their importance. This article shows that a consistent pattern of reducing the percentage of funding by grants results in an intermittent pattern of growth and reduction in spending. However, when grant is growing in real terms, higher local taxes result, even if the grant percentage is being reduced. This suggests that grant manipulation only delivers spending reductions in the short term, as the constraints of incrementalism on budget choices lead to politically unacceptable outcomes, and thus a system of high grant dependency needs competent management by government. - Reproduced.
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Articles
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Indian Institute of Public Administration | Volume no: 28, Issue no: 3 | Available | AR55122 |
Central grants have long been regarded as key financial instruments for controlling and directing local spending in Britain, and the drift to centralisation of funding has increased their importance. This article shows that a consistent pattern of reducing the percentage of funding by grants results in an intermittent pattern of growth and reduction in spending. However, when grant is growing in real terms, higher local taxes result, even if the grant percentage is being reduced. This suggests that grant manipulation only delivers spending reductions in the short term, as the constraints of incrementalism on budget choices lead to politically unacceptable outcomes, and thus a system of high grant dependency needs competent management by government. - Reproduced.
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