This report presents results from the third and final stage of\ud a research project, funded by the Rees Jeffreys Road Fund, which\ud aims to assess the impact of recent changes in central government\ud policies and powers in relation to local government finance upon\ud local authorities1 transport expenditure and outputs, and upon\ud their approach to addressing local transport problems and needs.\ud \ud \ud Two previous working papers present findings from the first two\ud stages of the project. The first (Sanderson, 1988A) reviews\ud relevant changes in government policies and financial control\ud mechanisms and identifies major research issues. The second\ud (Sanderson, 1988B) presents the results of an analysis of trends\ud in local authorities1 transport expenditure relative to the\ud Government's spending plans and expenditure provisions over the\ud period since 1979/80 which attempts to identify the impact of\ud changes in government policies and controls.\ud \ud \ud This working paper reports the findings of a more detailed\ud examination of the operation of the system whereby the Government\ud provides resources for, and exercises control over, local\ud authorities' capital expenditure on local road construction and\ud improvement. Within this broader context the operation of the\ud Transport Supplementary Grant system is examined and, in\ud particular, an attempt is made to assess implications of capital\ud expenditure controls for selected local authorities in terms of\ud their ability to address effectively the transport problems and\ud needs of their areas
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