Financialization and Local Statecraft

The UK government cut spending and pushed for financial self-sufficiency in its austerity measures after the 2008 crisis. This led to councils taking risks with taxpayer money and jeopardizing public services. Financialization and Local Statecraft explores the broader landscape of local government in England since 2010, examining how local statecrafters act in financial strategies, external advice, borrowing, and debt management. The framework reveals different approaches to financialization, with varying engagements with the UK government policy. This policy and financialization expose the local state's financial sustainability and resilience, but also raise questions about local government's purpose and funding.

Format: Hardback
Length: 288 pages
Publication date: 24 August 2023
Publisher: Oxford University Press

The UK government implemented austerity measures after the 2008 financial crisis, leading to significant cuts in expenditure and the promotion of local financial self-sufficiency in England. As a result, local governments were compelled to identify savings and generate new income streams to bridge funding gaps. During this period, councillors at the casino were often portrayed as taking risky decisions with local taxpayer money, potentially compromising the provision of essential public services.

While the focus of attention often rests on the high-profile cases in this internationally significant local public sector reform laboratory, Financialization and Local Statecraft takes a broader perspective by examining the landscape of local government in England since 2010. This encompasses a local tier consisting of over 300 governments managing a revenue expenditure of £100 billion, employing nearly 1.5 million people, and providing services to over 56 million individuals across the country.

In order to understand how local statecrafters navigate the complex terrain of financial strategies and risks, external advice, borrowing and debt management, and cross-jurisdictional activities, Andy Pike draws upon a novel local statecraft theory. This framework provides insights into the varying approaches taken by local statecrafters, ranging from those at the forefront of innovation to those adopting more conservative approaches, as well as their engagement with financialization.

While these relations and UK government policy may have limited impact on the overall landscape of local statecraft, they nonetheless exert a significant influence on reshaping local statecraft and shifting risks and uncertainties onto local government and the broader local state. This has important implications for the financial sustainability and resilience of the local state in the longer term.

Furthermore, the erosion of local accountability in the context of financialization raises fundamental questions about the purpose and funding of local government. It underscores the need for robust mechanisms to ensure that local decision-making processes are transparent, accountable, and responsive to the needs and priorities of local communities.

In conclusion, the UK government's pursuit of austerity and financialization has had a profound impact on local government in England. While these measures have aimed to address financial challenges, they have also raised concerns about the risks and uncertainties associated with local decision-making and the sustainability of the local state. It is essential to continue to monitor and evaluate these developments to ensure that local government remains effective, accountable, and responsive to the needs of its communities.

Weight: 592g
Dimension: 164 x 242 x 24 (mm)
ISBN-13: 9780192856661