Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

'NAIVE' GRANT SYSTEM MUST BE REVIEWED

  • Comment
The system for distributing local government grant is based on 'naive statistical methods' and is in urgent need of...
The system for distributing local government grant is based on 'naive statistical methods' and is in urgent need of review, according to two leading academics.

Alan Duncan and Peter Smith of York University have joined other leading local government finance experts in claiming that the use of historical spending patterns to calculate grants has been distorted by capping, a process known as 'circularity'.

Writing in November's Fiscal Studies, they put forward an alternative system which they claim overcomes the difficulties created by capping.

Fiscal Studies costs £8 from the Institute of Fiscal Studies, Ridgmount Street, London WC1E 7AE.
  • Comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions.

Links may be included in your comments but HTML is not permitted.