PAYING FOR LOCAL GOVERNMENT: CHARGING FOR SERVICES

The latest Green Paper on reform of local government finance was published in January 1986. It represents an attempt to achieve local accountability which the present system is regarded as having failed to achieve. Increased use of fees and charges is seen as 'an even more direct way of ensuring that local people can see what they are getting for what they are paying' and, at the same time, 'has benefits in terms of efficiency as well as accountability'. This article critically appraises just what is meant by 'realistic charging policies', 'efficient use of resources' and 'effective pricing policies'. Realistic pricing policies are then outlined based on radical improvements in the nature and quality of information available to local authorities. The danger of a blinkered approach to increased use of charging is stressed and factors to be considered when reviewing charging are discussed.