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In Land Use Planning in order to choose the most suitable geographic scale at which to implement policies we can follow four guidelines : 1) conditions vary across space in ways that mean that there is plausible case for local tailoring of policies to regional and local circumstances 2) there is need to consider the extent to which spillover effects are felt at different spatial scales 3) it should be identified whether there are significant economies of scale or scope affecting the economic policy area 4) it should be taken into account potential synergies and co-ordination challenges within and between economic policy areas.
Decisions need to be taken at the most local scale feasible, subject to that scale of government internalising both gains and costs. This implies different types of decision at different tiers of government, with major infrastructure decisions essentially being a national concern and small developments left to the local level. Most decisions are mostly more effectively made at the level of a Functional Urban Region. It is unarguable the importance to coordinate physical with financial planning, once that for development to occur there need to be the funds.
