Defining Equal Standards in Local Public Services

Abstract

This paper explores different interpretations of the notion of equal standards in local public services, as applied to the systematic distribution of resources between localities. After discussing the context and goals of public resource distribution between territories, a typology of standards is defined and analysed in terms of simple microeconomic theory. From this analysis are drawn some conclusions about the applicability of different standards to different kinds of service and about systematic territorial distributional effects related to income and urban-rural character. The discussion is illustrated with examples drawn from United Kingdom systems including the Rate Support Grant. In the concluding section it is argued that standards should be explicit and that consistency with key value judgements should guide the choice of standards.