THE URBAN FISCAL PROBLEM, 1870-1914 - GOVERNMENT EXPENDITURE AND FINANCE IN ENGLAND AND WALES

The years 1870-1914 saw the first serious attempts to grapple with the social and economic problems generated by industralization and urbani zation. Local councils operated with a limited tax base. Roads and wat er supply appear to have taken priority over public health and police. Income and wealth were major determinants of expenditure. The county boroughs were the most dynamic elements and used trading profits to su pport their spending levels. London was a high cost area but survived because of its high rateable values. Rural areas were badly served as a consequence of a poorly organized governmental framework.