Developing geographical indicators of mileage-related costs: a case study exploring travelling public services in English local areas

Abstract

The context of this study is the public sector provision of services involving travelling in local authority areas in England. Such travelling services are costly and the relative levels of these costs across different local areas have raised a number of policy issues, particularly how performance assessments of local authorities and capitation-based funding by central government take into account (or fail to take into account) the differential travel costs faced in geographical areas that differ in population dispersion (sparsity) characteristics. The research presented here is concerned with identifying and evaluating practical indicators of mileage-related costs faced in local areas and a range of indicators have been explored for three services: domiciliary care, refuse collection and home-to-school transport. The findings suggest that currently used population dispersion indicators could be improved and that the current sparsity allowances in England underestimate the relative cost effects by a considerable amount.

Keywords:

• public expenditure
• Government
• regional studies
• regression
• transport

Acknowledgements

This research has been based on several projects carried out for a number of different clients. The County Councils Network sponsored a study focusing on elderly domiciliary care and was carried out by ORH Ltd and by Secta MSA Ferndale with which the authors were associated. Also the Countryside Agency (now Commission for Rural Communities) sponsored a review of geographical indicators also undertaken by Secta MSA Ferndale. The quantification of all-England values for a number of geographical measures was partly sponsored by the Office of the Deputy Prime Minister (now Department for Communities and Local Government) and finally a review of additional costs in rural area was commissioned by the Department for Environment, Food and Rural Affairs.