Delivering Fiscal Squeeze by Cutting Local Government Spending

Abstract

The financial crisis of 2008 and associated recession led to a permanent deterioration in the outlook for the UK's public finances. As part of the fiscal consolidation implemented by the UK government, grants to local authorities in England were cut by more than a third in real terms between 2009–10 and 2014–15. With limited revenue‐raising powers, these cuts meant drastic reductions in local authority spending in total and per person: local authority spending per person fell in real terms by 23.4 per cent over this period. But the size of spending cuts per person differed greatly across local authorities, ranging from 46.3 per cent to 6.2 per cent. On average, the distribution of the cuts across authorities does not seem to reflect the principle of ‘equalisation’ that was, at least in theory, in place up until 2013–14; the local authorities with least revenue‐raising capacity (which are typically the most deprived) have on average actually seen the largest spending cuts. Moreover, this pattern looks set to continue over the next five years, with those authorities that have seen the largest cuts to date also expected to see the largest cuts in future.

Did Austerity Cause Brexit?

“…At the district level, the level at which most administration of welfare spending takes place, welfare spending per person fell by 23.4 percent in real terms between 2010 and 2015. Across districts, the extent of the cuts was widely variable, ranging from 46.3 percent to 6.2 percent, with the sharpest reductions in the poorest areas (Innes and Tetlow 2015). Using data from government estimates on the expected intensity of specific welfare cuts across districts, I show that support for UKIP started to grow in areas with significant exposure to specific benefit cuts after these became effective.…”

Exploring spatiotemporal variations in public library provision following a prolonged period of economic austerity: A GIS approach

“…Under the provisions of the 1964 Public Libraries and Museums Act, local authorities in the UK have a statutory duty to provide a “comprehensive and efficient” library service (Her Majesty's Stationary Office [HMSO], ). However, following a decade of austerity brought about by the 2008 economic crisis, UK local authorities have experienced a dramatic fall in central government (Westminster) funding that has resulted in a substantial, and often geographically uneven, reduction in local spending power (Innes & Tetlow, ; National Audit Office [NAO], ). The majority of Welsh Government funding comes from Westminster and the impact of austerity on Wales, according to figures for 2019/20, has meant an £800 m reduction in central government funding compared to 2010/11 (Welsh Government, ).…”

Encouraging managers of care homes for older adults to participate in research

“…At the forefront of these challenges are financial issues. While many local authorities (LAs) have tried to protect social care, consistent budget cuts have had an impact (Bolton, 2016;Innes and Tetlow, 2015;Local Government Association, 2014). Care homes have also experienced a rise in costs (Laing and Buisson, 2014), not least through implementing the National Living Wage (Ingham et al, 2015) but also due to difficulties recruiting and retaining skilled staff (Burtney et al, 2014;Rubery et al, 2011) and increased use of agency or temporary staff (Registered Nursing Home Association, 2014).…”