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Getting to grips with England's formula for local authority support

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  • Mervyn Stone

Abstract

A Department for Communities and Local Government formula is currently granting over 20 billions of pounds sterling to the 456 local authorities (LAs) of England. This article analyses the remarkable sensitivity of the formula to coordinated changes in the small allocations to Wokingham and Richmond upon Thames (that do not change the total grant)—some big LAs experience large absolute changes in funding while small ones may undergo large percentage changes. This violation of rational principle by a world leader in the development of resource allocation formulae makes a strong case for thoughtful interdisciplinary review of any formula.

Suggested Citation

  • Mervyn Stone, 2012. "Getting to grips with England's formula for local authority support," Public Money & Management, Taylor & Francis Journals, vol. 32(2), pages 145-152, March.
    • Handle: RePEc:taf:pubmmg:v:32:y:2012:i:2:p:145-152
    DOI: 10.1080/09540962.2012.656022
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    References listed on IDEAS

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    1. Alex Gibson & Sheena Asthana, 2011. "Resource allocation for English local government: a critique of the four‐block model," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 174(3), pages 529-546, July.
    2. Mervyn Stone, 2005. "Accumulating Evidence of Malfunctioning Contractual Government Machinery," Public Money & Management, Taylor & Francis Journals, vol. 25(2), pages 82-86, April.
    3. Jane Galbraith & Mervyn Stone, 2011. "The abuse of regression in the National Health Service allocation formulae: response to the Department of Health's 2007 ‘resource allocation research paper’," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 174(3), pages 517-528, July.
    4. Mervyn Stone & Jane Galbraith, 2006. "How not to fund hospital and community health services in England," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 169(1), pages 143-164, January.
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    Cited by:

    1. Paul Hewson & Joyce Halliday & Alex Gibson & Sheena Asthana, 2016. "Policy analytics need more than a spreadsheet: a case study in funding formulae," Annals of Operations Research, Springer, vol. 236(1), pages 215-232, January.
    2. Paul Hewson & Joyce Halliday & Alex Gibson & Sheena Asthana, 2016. "Policy analytics need more than a spreadsheet: a case study in funding formulae," Annals of Operations Research, Springer, vol. 236(1), pages 215-232, January.

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