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Time, Parties and Budgetary Change: Fiscal Decisions in English Cities, 1974–88
Published online by Cambridge University Press: 27 January 2009
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The ideological differences between the Labour and Conservative parties in the 1980s are greater than at any time in the postwar era. Consequently one would expect party control at the local level to have an increasing effect on local government decisions. Using an approach to cross-time analysis that avoids some of the major shortcomings of other studies, the relationship between party control and local fiscal decisions in English cities between 1974 and 1988 can be traced. The method allows not only an exploration of the direct effect of party control, but also its indirect effects, mediated through grant penalties and rate-capping. Under Mrs Thatcher's administration the impact of party on local fiscal decisions has increased quite substantially.
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References
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24 We cannot include changes in spending financed by balances as an independent variable predicting spending change in the same year. Decisions about the use of balances are not necessarily temporally and causally prior to spending and rating decisions; it is more likely that they are taken simultaneously. The inclusion of previous spending decisions allows us to retain a measure of the use of balances which avoids this problem.
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