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An English assessment of Scotland’s education spending needs

Author

Listed:
  • David King
  • Matthew Pashley
  • Rob Ball

Abstract

Scotland has much higher public expenditure per head than England, but little work has been done to compare Scottish and English needs. We compare their needs for school education, and we show that if the Formula Spending Share approach that is used to estimate English local authorities’ needs were applied in Scotland, then Scotland would be found to need about 3 per cent more per pupil than England; however, this English approach may slightly underestimate Scotland’s needs. We also show that the Grant Aided Expenditure approach that is actually used to estimate Scottish local authorities’ needs may be about 7 per cent more generous than the English approach. Finally, we find that the correlation between the relative education needs for different authorities as assessed by the Scottish approach and their relative needs as assessed by the English approach is only modest; this implies that there may be serious shortcomings in at least one approach.

Suggested Citation

  • David King & Matthew Pashley & Rob Ball, 2004. "An English assessment of Scotland’s education spending needs," Fiscal Studies, Institute for Fiscal Studies, vol. 25(4), pages 439-466, December.
  • Handle: RePEc:ifs:fistud:v:25:y:2004:i:4:p:439-466
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    Cited by:

    1. Nuria Boch Roca & Marta Espasa & Daniel Montolio, 2014. "Should Large Spanish Municipalities Be Financially Compensated? Costs and Benefits of Being a Capital/Central Municipality," Hacienda Pública Española, IEF, vol. 211(4), pages 67-91, December.
    2. James Gallagher & Daniel Hinze, "undated". "Financing Options for Devolved Government in the UK," Working Papers 2005_24, Business School - Economics, University of Glasgow.

    More about this item

    JEL classification:

    • H0 - Public Economics - - General
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • R5 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis

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