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The governance of public bodies in times of austerity

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  • Heald, David
  • Steel, David

Abstract

Private sector governance arrangements have been imported into UK public bodies under the influence of New Public Management reforms. This paper draws on a cohort study of 14 public bodies to assess the appropriateness of this practice and the impact of fiscal austerity during the study period of 2010–16. Based on multiple sources, including interviews with Chairs and Chief Executives, it shows that, though similar to private corporate Boards in appearance, public Boards are often excluded from the strategy role. They are also vulnerable to the elastic definition of policy over which Ministers assert dominance, thereby blurring accountability. It demonstrates the tension between vertical accountability to government principals and horizontal accountability to stakeholders. During the study window, public bodies were abolished, broken up, merged, reconfigured or taken back into core government, as the UK Government imposed austerity measures to reduce the size of the fiscal deficit and to diminish government roles in delivery, financing and regulation of public services. Surviving public bodies in the study suffered deep budget cuts and less autonomy from central control. These findings are interpreted as evidence of the re-territorialisation of the UK public sector, with accruals accounting and accounting consolidation practices playing a facilitating role.

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  • Heald, David & Steel, David, 2018. "The governance of public bodies in times of austerity," The British Accounting Review, Elsevier, vol. 50(2), pages 149-160.
    • Handle: RePEc:eee:bracre:v:50:y:2018:i:2:p:149-160
    DOI: 10.1016/j.bar.2017.11.001
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    References listed on IDEAS

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    1. Enrico Bracci & Christopher Humphrey & Jodie Moll & Ileana Steccolini, 2015. "Public sector accounting, accountability and austerity: more than balancing the books?," Accounting, Auditing & Accountability Journal, Emerald Group Publishing Limited, vol. 28(6), pages 878-908, August.
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    Cited by:

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    3. Matteo Rossi & Giuseppe Festa & Ardi Gunardi, 2019. "The Evolution of Public-Private Partnerships in a Comparison between Europe and Italy: Some Perspectives for the Energy Sector," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 403-413.
    4. Silvia Fresneda & Nuria Reguera & Fernando Casas, 2021. "De-agentification Process in Spanish Regional Governments," Hacienda Pública Española / Review of Public Economics, IEF, vol. 236(1), pages 39-64, March.

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