Intraurban Spatial Variations in Local Government Service Provision: 2. Application and Results

Abstract

It is shown how the methodology used to estimate net fiscal incidence, presented in a previous paper, can be applied to British local government. The example chosen is Leeds, and four services—education, fire protection, library provision, and swimming pool provision—are studied. Estimates of net fiscal incidence are presented for the period 1966–1975. The choice of appropriate geographical areas within the city is discussed and analysis zones are defined on the basis of a principal components analysis of characteristics likely to give rise to significant variations in expenditure participation and revenue contribution. A brief outline of service delivery in Leeds is then presented. Net fiscal residuals are estimated separately for each service. Service expenditure allocation is estimated by spatial interaction techniques and it is shown that there are significant variations in the distributions. However, the spatial pattern of net fiscal imbalances in the City turn out to have some overall similarities. Because of local government reorganisation and other factors, it is not possible to directly compare changes over the study period. Nevertheless, the methods by which local authority finances are raised, movement of client groups, and changes in service delivery are all important mechanisms contributing to change. Further possible explanations are also briefly discussed.