This study is concerned with the continuing disparity in levels of resources in the British education system. This disparity is examined on a regional and local level by focussing on the North East of England and on one local authority in the region. The imbalance between regions, local authorities and localities within local authorities is related to an interconnecting network of processes that can be seen to influence and reinforce the distribution of educational resources. The study examines the mechanisms of resource and expenditure allocation in the education system and the control mechanisms inherent in these allocation procedures. Analysis of educational provision in one Tyneside local authority shows a clear relationship between levels of resources and the mechanisms, at both national and local level, that control and allocate the finance for educational provision in the local authority. Research for the study was carried out during 1975 - 1977, at a time of economic recession, high inflation and public expenditure cutbacks. The thesis highlights the financial problems that local authorities were experiencing at the time, as they tried to provide an increasingly costly education service with an education budget that was increasing at a much slower rate. As a consequence of these problems, unequal levels of education resources have become reinforced and accentuated by the financial constraints of the 1970s