Why the application of resource accounting and budgeting did not distort the 2002 strategic review of water charges in Scotland

Midwinter, Arthur and Ashcroft, Brian (2006) Why the application of resource accounting and budgeting did not distort the 2002 strategic review of water charges in Scotland. Quarterly Economic Commentary, 31 (2). pp. 60-63. ISSN 0306-7866

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    Abstract

    The recent paper by J and M Cuthbert continues the arguments they made earlier in the Commentary that errors in the application of Resource Accounting and Budgeting led to water customers being “overcharged”. Moreover, whilst the “implementation of the new control regime was meant to be neutral, the amount of borrowing available to the water industry under the new regime was clearly very restrictive compared to the borrowing limits applied to the industry” (Cuthbert and Cuthbert 2003; 2006).