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Fair Shares for All? The development of needs based governmental funding in education, health and housing

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  • Ross Hendry

Abstract

Furthering equity as an achievable public policy objective is based on the ability to assess needs accurately, and distribute resources accordingly. This paper plots the development of the formulae governing resouce allocation in education, health and social housing, and charts their course as a tool with which governments attempted to achieve various objectives. The paper begins by suggesting that allocation systems can be explained through a form of public choice theory. It then charts the development of needs-based resource allocation from its origin in the nineteenth century, through the pre- and post Second World War period, and into the major flowering of needs-based formulae since 1970 - when resources were constrained and attempts were made to push allocation even further down and apply the formulae to smaller units. The conclusion looks at equity, public choice and technical ability as over-riding features governing the development of resource allocation within the English state sector.

Suggested Citation

  • Ross Hendry, 1998. "Fair Shares for All? The development of needs based governmental funding in education, health and housing," CASE Papers 018, Centre for Analysis of Social Exclusion, LSE.
    • Handle: RePEc:cep:sticas:018
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    File URL: https://sticerd.lse.ac.uk/dps/case/cp/paper18.pdf
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    References listed on IDEAS

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    1. Roy Carr-Hill & Geoffrey Hardman & Stephen Martin & Stuart Peacock & Trevor Sheldon & Peter Smith, 1994. "A formula for distributing NHS revenues based on small area use of hospital beds," Working Papers 022cheop, Centre for Health Economics, University of York.
    2. Anne Ludbrook & Alan Maynard, 1988. "The funding of the National Health Service: what is the problem and is social insurance the answer?," Working Papers 039chedp, Centre for Health Economics, University of York.
    3. Stuart Peacock & Peter Smith, 1995. "The resource allocation consequences of the new NHS needs formula," Working Papers 134chedp, Centre for Health Economics, University of York.
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    Cited by:

    1. David Clifford, 2021. "Disparities by deprivation: The geographical impact of unprecedented changes in local authority financing on the voluntary sector in England," Environment and Planning A, , vol. 53(8), pages 2050-2067, November.

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