Inside the machine: The left and finance professionals in Local Government

Abstract

The authors argue that the left ‘has underestimated the significance of the treasurer in local authorities’, the authors warn against the lure of ‘creative’ accounting.

The consequences for the management of conflict of the reform of English local government finance and structure

“…The twin pressures of financial retrenchment and market-like forces brought about an intense round of prioritizing-which services to cut and which to protect? This both sharpened some of the longstanding differences between officers and councillors (concerning professional as opposed to political priorities) and blurred them in cases where members entered into new alliances with officers to explore methods of "creative accounting" (Clarke & Cochrane, 1989), in order to minimize the damage caused by the government's actions. Aware of this trend the Widdicombe Committee recommended an increase in the powers of the chief executive as a means of offsetting the increasing politicization amongst councillors and officers, and to restrain councillors from interfering in day to day management issues (Widdicombe, 1986, paras 2.52 and 2.53).…”

“…In this way, a new version of "joint working" is being ushered in which provides an ideological justification of Taylorization. The Local Government Act 2000 decentralizes structures for elected member involvement in industrial relations presumably to circumvent the kinds of resistance put up by Labour Authorities in the 1980s in response to the Tory reforms (Clarke & Cochrane, 1989). At Northcity, Labour lost its longstanding majority in the last elections and the LibDems who came into power are retaining the new structures and have embarked on a process of externalizing large chunks of the authority's services.…”

Cutbank Management in Local Government: An Empirical Analysis

“…The finance departments reviewed the base budgets of the service departments; translated political preferences into budgetary strategies; suggested alternative ways of financing to avoid making spending cuts; and monitored the implementation of budgets. The resource squeeze in local government has greatly enhanced the power of finance professionals (Clarke & Cochrane, 1989;Elcock, 1986, pp.180-192;Elcock & Jordan, 1987;Elcock et ai, 1989, pp.181-182;Rosenberg, 1985;and Rosenberg, 1989). Third, there is managerial expertise based on knowledge of the administration of local authorities.…”

THE CHANGING STATE OF LOCAL GOVERNMENT: RESTRUCTURING FOR THE 1990s

“…Although it may be dangerous to exaggerate the practical significance of the new m.anagement rhetoric, many key professionals seek legitimacy not from the electoral process, but from their ability to fit in with the latest management Ianguage, particularIy reflected in the shift of usage, admittedly still tentative, from 'client' to 'consumer', as well as a new interest in marketing. Finance professionals have been eager to take up the message of the Audit Commission with its stress on the 'competitive council' and a greater role for them (see, for example Clarke and Cochrane 1989), and some housing professionals have been keen to take up possibilities of running their agencies on business lines (see, for example , who also refers to the literature of the new management).…”