Blog
The unkindest cut of all?
5th November 2010
Opportunity costs – can a local authority afford to spend £21,000 a year on keeping 3 public toilets open, when their budget has already been cut by £220,000 and they are expecting a further 27% cut, already announced in the spending review? My local council, Epsom and Ewell, has decided not, as they need the money in order to maintain other services, particularly personal care services to the elderly in the borough. But, in order to avoid the negative externalities that could be associated with removal of a quasi-public good like public conveniences, they are seeking some alternative provision for the ‘emergency needs’ that they were there for – they are negotiating with local businesses to allow the public use of their facilities. Now that sounds like an excellent example of improving capacity utilisation, combined with David Cameron’s Big Society!