The depths of the cuts: the uneven geography of local government austerity

TLDR

Austerity has dominated Britain’s public policy since 2010, driving substantial restructuring of the local state and yet few studies have examined the interaction between national and local austerity measures. The study provides a fine‑grained spatial analysis of local authority budgets to highlight their socio‑economically and geographically uneven impacts. The authors identify substantial variations between authorities in funding, tax base, fiscal resources, assets, political control, service need, and demographics. The study argues that austerity has reshaped the central‑local relationship, shrinking local capacity, increasing inequality among local governments, and exacerbating territorial injustice.

Abstract

Austerity, the sustained and widespread cuts to government budgets, has characterised Britain's public policy since 2010. The local state has undergone substantial restructuring, driven by major budget reductions from central government. Hitherto, few studies of austerity in the UK have considered the interplay of national and local policies. We contribute a fine-grained spatial analysis of local authority budgets, highlighting their socioeconomically and geographically uneven impacts. We identify substantial variations between authorities in terms of funding, local tax-base, fiscal resources, assets, political control, service-need and demographics. We argue that austerity has actively reshaped the relationship between central and local government in Britain, shrinking the capacity of the local state, increasing inequality between local governments and exacerbating territorial injustice.