Headlines: September 19th, 1998

Pilot research which aims to measure whether deprived areas really benefit from attempts to target public spending has been welcomed by the Government.

The study measured public spending in Brent, Liverpool and Nottingham and found it was seventeen per cent above average. In some of the most deprived council ward areas spending could be as much as 45 per cent above average.

The bulk of this extra spending included social services for children, housing, regeneration and environmental capital spending.

But the research also showed that some public spending tended to benefit more well off areas. Such areas took greater advantage of public spending in higher education, roads, rail subsidies and pensions.

Welcoming the research report, Regeneration Minister Richard Caborn said it had already been influential in the development of Government policies and programmes including the New Deal for Communities and the Social Exclusion Unit’s report Bringing Britain together.

Where Does Public Spending Go – A Pilot Study to Analyse the Flows of Public Expenditure to Local Areas, costs 27 pounds and is available from DETR, Publication Sales Centre, Unit 8, Goldthorpe Industrial Estate Rotherham S63 9BL. Tel: 01709 891318