Cost adjustors
After state averages for revenue and expenditure are applied to each local government (according to drivers such as the Unimproved Capital Value (UCV), population or traffic volumes for example), the Commission alters the assessment for factors outside the council's control that can affect its ability to rate at capacity or spend at average, in line with the effort neutrality principle. These factors are termed cost adjustors and are the key instrument the Commission used to establish the relative grant need of each council.
