The Financial Health of Local Authorities in England and Wales: Resource and Expenditure Position 1974/1975–1980/1981

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Abstract
This paper describes the spatial distribution of tax base, local expenditures, and local tax rates over the period from 1974/1975 to 1980/1981. The paper then analyses the extent to which resource and expenditure patterns are related to inner-city stress (as measured by partnership and other statutory status following the 1978 Inner Urban Areas legislation) and local political party colour. From the use of analysis of covariance methods, the conclusion is drawn that urban stress has little relation to resource and expenditure differences, but that local party colour is strongly correlated with expenditure and tax base differences. Deriving from the role of the rate support grant, tax rates show no significant relation to urban status or local party colour.

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