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The impact of demographic trends on local government financial reserves: evidence from England

De Widt, Dennis 2021. The impact of demographic trends on local government financial reserves: evidence from England. Local Government Studies 47 (3) , pp. 405-428. 10.1080/03003930.2021.1877665

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Local government in England has experienced significant financial volatility in recent years due to cuts in central government funding and increased demand for service provision. Using a panel data set of English local governments over the period 2005–2016, this study investigates the impact of demographic factors on the financial reserves held by different types of English local governments. Dissimilar effects are traced on local governments’ saving capability of different grant funding mechanisms and whether local governments are involved in social care provision, and how they provide these services. Findings show that local governments actively act upon financial uncertainty by expanding their reserves through implementing changes in both their income and expenditure structures, including revenue generation through alternative sources such as capital investment. The potential, however, to expand reserves differs significantly between local governments and has reduced due to growing demand for social care services.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Publisher: Taylor & Francis
ISSN: 0300-3930
Date of First Compliant Deposit: 1 February 2021
Date of Acceptance: 5 January 2021
Last Modified: 25 Jul 2022 19:21

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