Collins, A

Dom, BK

Jones, M

Nottingham Trent Institutional Repository (IRep)

British Academy of ManagementConferenceAston University – 3rd-5th September 2019.Where the Axe fallsAusterity and Cutback Management in Social Services and EducationBernard Kofi DOM, Martin JONES, and Alan COLLINSNottingham Business School, Nottingham Trent UniversityIntroduction & Background and Context“Funding for Local Government has been cut significantly since 2010. At the same time as cutting funding, the government restricted local authorities ability to raise council tax to fill the gap” (DCLG Select Committee 21st August 2019, p. 3). LA Funding has seen funding falling by an estimated as 49.1% in real terms between 2010/11 and 2017/18 (NAO 2019), this reduction is without parallel in modern times (Prof. Tony Travers 2019, p. 7).This Trend is set to increase to 60% - (Prof. Tony Travers 2019, p. 17) and there are overspends of £665m and £536m on children and adult social care respectively (IFS 2019, p. 17)97% of LAs have planned to increase Council Tax in 2019/20 (Three quarters by more 2.5%).Over 50% of LAs are planning to use some of their reserves this year; 40% have been using their reserves for two years running.Almost 33% of LAs could risk depleting their reserves in 10 years (Almost 20% of LAs are set to be at risk by 2021).(LGIU, 2018)New funding formula with 75% Business rate retention is due in April 2020.(HMT 2019)Survey by Local Government Information Unit 2018Research ProblemsHas this policy delivered improved service delivery VFM?The policy adopted has been austerity-localism and cutback managementintended to improve service delivery and ensure VFMUnlike the NHS, LA services and social services in particular, have not beenprotected – Central Government policy has been inconsistent. (SelectCommittee 2019, p. 3).LAs are faced with Financial and Service Demand pressures cutbacks andlost services. There has been no council tax revaluation since early 1990sso distribution of resources has become increasingly inefficient.Research QuestionTo what extent has the implementation of the policy of austerity-localism affected social and education services in English LAs between 2010 and 2018?“The paper uses a 15-year dataset, with sufficient financial data/information to enable us to evaluate the impacts of austerity on social and education services and identify three distinct time periods (i.e. pre-recession, economic recession, and post-recession era).Literature ReviewIt will be applied to the three (3) periods of pre-recession; recession; and post-recession.A gap exist in the literature on ‘the impacts of austerity’ in English LAs and inindividual services in particular.This paper draws on this literature to explain to explain:Actions, reactions, and inactions of English LAs in providing social servicesand education (Bordogna and Neri 2014; Stuckler et al. 2014; Fitzgeraldand Lupton 2015; Lowndes and Gardner 2016; Jones et al. 2017).Literature till DateLowndes and McCaughie 2013; Cepiku et al. 2018  have differentiated impacts on service delivery, which can be summarised into four service groupsCutback in Services (Lowndes and McCaughie 2013; Cepiku et al. 2018) Changes in unemployment (Kickert 2012; Hastings et al. 2013; Bordogna and Neri 2014) Changes in Levels of Inequality (Wilkinson and Pickett 2010; Bracci et al. 2015) Adverse Impact on Households (Lowndes and McCaughie 2013; Kennett et al.2014)Methodology and MethodsA case study of English Local Authorities (Unitary Authorities and county councils)Stratified sampling technique to select sample size of LAsQuantitative study approach Using a timely dataset of LAs’ income/expenditure between 2003 to 2018➢ pre-recession (2003 – 2008), ➢ economic recession (2008 – 2009), and ➢ post-recession era (2010 – 2018)Emerging FindingsAn increase in income from both central and local taxation for English LAs during the pre-recession period (2003 to 2008)English LAs were experiencing service pressures before 2008, but this increased during the recession and increased further in the post-recession periodA continues decrease in RSGs to English LAs during recession and post-recession periodsQuestionsDid LAs get more responsibilities from central government on social services and education during the post-recession period?Have most English LAs become more dependent on reserves duringrecession and post-recession periods?; and Has there been significantexploitation of reserves?Has increased demand for social services affected the reduced spending onother core and discretionary services?Any Questions?REFERENCESBordogna, L., & Neri, S., 2014. ‘Austerity policies, social dialogue and public services in Italian local government’. Transfer: European Review of Labour and Research, 20(3), pp.357-371.Bracci, E., Humphrey, C., Moll, J. & Steccolini, I., 2015. ‘Public sector accounting, accountability and austerity: more than balancing the books?’. Accounting, Auditing & Accountability Journal, 28(6), pp.878-908.Cepiku, D., Giordano, F. & Savignon, A.B., 2018. ‘Does strategy rhyme with austerity?’. Public Management Review, 20(3), pp.421-443.Fitzgerald, A. & Lupton, R., 2015. ‘The limits to resilience? The impact of local government spending cuts in London’. Local Government Studies, 41(4), pp.582-600.Hastings, A., Bailey, N., Besemer, K., Bramley, G., Gannon, M. & Watkins, D., 2013. ‘Coping with the Cuts?: Local Government and Poorer Communities’. York: Joseph Rowntree Foundation.Jones, M., 2017. ‘English Resilience in the Face of Austerity’. In Governmental Financial Resilience: International Perspectives on How Local Governments Face Austerity (pp. 73-91). Emerald Publishing Limited.Kickert, W., 2012. ‘State responses to the fiscal crisis in Britain, Germany and the Netherlands’. Public Management Review, 14(3), pp.299-309.Kennett, P., Jones, G., Meegan, R., & Croft, J. (2015). ‘Recession, austerity and the ‘great risk shift’’: Local government and household impacts and responses in Bristol and Liverpool. Local Government Studies, 41(4), pp.622-644.Lowndes, V. & Gardner, A., 2016. ‘Local governance under the conservatives: Super-austerity, devolution and the ‘smarter state’’. Local Government Studies, 42(3), pp.357-375.Lowndes, V. & McCaughie, K., 2013. ‘Weathering the perfect storm? Austerity and institutional resilience in local government’. Policy & Politics, 41(4), pp.533-549.Stuckler, D., Reeves, A., Loopstra, R., Karanikolos, M. & McKee, M., 2017. ‘Austerity and health: the impact in the UK and Europe’. European Journal of Public Health, 27(suppl_4), pp.18-21.

Where the axe falls: austerity and cutback management in social services and education

http://irep.ntu.ac.uk/id/eprint/44863/1/1496224_Dom.pdf

Where the axe falls: austerity and cutback management in social services and education

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