Intraurban Spatial Variations in Local Government Service Provision: 1. Methodology

A methodology is developed which enables intraurban spatial variations in local government service provision to be measured. The methodology is sufficiently general to be applied to any service delivered by British local government. The allocation of expenditure to different geographical areas of the authority and contributions in the form of taxation from these zones are each identified in order to estimate net fiscal incidence. A brief review of existing studies is presented, which shows that although increasing attention has been given to the geographical distribution of local government spending, there have been few systematic studies examining expenditure and revenue flows. The problems associated with measuring expenditure incidence are discussed and reviewed. It is suggested that ‘participation’ forms a basis for estimating expenditure distribution to the household sector. Revenue is contributed by households in various roles. Here, contributions through income are used as a surrogate. Household incomes can in turn be estimated by category analysis techniques. In addition, contributions through the rating system are assessed. Finally, a systematic statement of the methodology is outlined and its possible contribution to important policy areas suggested.