New development: Corporatization of local authorities in England in the wake of austerity 2010–2016

Abstract

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Local governments and their arm’s length bodies

“…The expert survey confirms what we know from the literature so far: there is a large variety in forms of ALBs (Ferry et al 2018;Torsteinsen 2019;Voorn, Van Genugten, and Van Thiel 2017). And then one should be aware that the literature is not even covering all countries and policy sectors equally.…”

“…An exception is Hungary, where the number of type 3 ALBs has not changed significantly since the 1990s. In Portugal, following the increase of type 3 ALBs since 1998, there was a significant reduction in numbers after the financial bailout in 2011, which intriguingly contradicts the rise in numbers after the crisis in England (Ferry et al 2018).…”

“…Countries differ in the types of ALBs that are established, depending on, for example, legal context or state traditions. In some countries, the creation of ALBs goes back decades (Van Genugten 2008), while in other countries, the recent financial crisis has spurred local governments to externalise (Ferry et al 2018;Kuhlman and Bouckaert 2016). An overview of what arm's length service delivery at the local level nowadays looks like across countries is, however, lacking (Torsteinsen 2019).…”

“…Despite its widespread, the creation of ALBs at the local level isin contrast to a similar trend at the national level (see, for example, Verhoest et al 2012)largely understudied (Cambini et al 2011;Kuhlman and Bouckaert 2016;Lidström 2017;Torsteinsen 2019;Voorn, Van Genugten, and Van Thiel 2017). The literature that reports on the local level focuses predominantly on contracting out and privatisation (e.g., Brown and Potoski 2003;Dijkgraaf, Gradus, and Melenberg 2003;Domberger and Jensen 1997;Hefetz and Warner 2004;Hirsch 1995;Van Genugten 2008), and to a lesser extent and more recently on corporatisation (Citroni, Lippi, and Profeti 2013;Ferry et al 2018;Florio and Fecher 2011;Grossi and Reichard 2008;Krause and Van Thiel 2018;Tavares 2017;Voorn, Van Genugten, and Van Thiel 2017). Consequently, the literature on local ALBs is not only limited, but also fragmented.…”

Re-interpreting re-municipalization: finding equilibrium

“…For one, the literature using the term "remunicipalization" seems at odds with the literature on motives for (reverse) privatization, which describes reasons for shifting services back to in-house delivery as more pragmatic than ideological (Albalate and Bel 2019;Bel and Warner 2008;Chong, Saussier, and Silverman 2015;Demuth, Friederiszick, and Reinhold 2019;Gradus, Dijkgraaf, and Wassenaar 2014;Gradus, Schoute, and Budding 2019;Warner 2007, 2019;Pérez-López, Prior, and Zafra-Gómez 2015;Warner 2008;Warner and Aldag 2019;Warner and Bel 2008;Warner and Hefetz 2012). It also contradicts the literature on corporatization, which shows that local governments in many countries are increasingly placing public service delivery at arm's length (Andrews et al 2019;Bergh et al 2018;Ferry et al 2018;Grossi and Reichard 2008;Tavares 2017;Tavares andCamões 2007, 2010;Van Genugten, Van Thiel, and Voorn 2019;Voorn, Van Genugten, and Van Thiel 2017;Voorn, Van Thiel, and Van Genugten 2018). To which extent can the claim be corroborated that remunicipalization is motivated by a rejection of businesslike local public service delivery?…”