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Financial resilience of English local government in the aftermath of COVID-19

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  • Thomas Ahrens
  • Laurence Ferry

Abstract

Purpose - The financial resilience of local authorities has been a serious concern over the past decade due to austerity and its effects on local government budgets despite rising service demands. More recently, the scale and suddenness of the shock from COVID-19 has exacerbated problems of financial resilience. This paper explores the financial management responses required by a sudden, nationwide pandemic of such severity. Design/methodology/approach - This paper applies the concept of financial resilience to English local government to analyse their situation in the aftermath of COVID-19. It is based on a close reading of official reports and the news media. Findings - Local authority’s financial resilience could deal with normal levels of risk arising from austerity. However, the seriousness of COVID-19 alongside pressures still emanating from Brexit requires a significant level of central government support. This is critical as local government is expected to underpin future economic growth of the UK as well as deliver an important social response. Presently, the financial framework for funding individual local authorities through central government in terms of COVID-19 support is not on a reliable footing to answer specific demands. This can lead to gaming and perverse incentives. Originality/value - This is the first paper to connect the financial resilience in the local government framework with the required central government funding procedures for sudden nationwide crises, such as the COVID-19 pandemic. It identifies the need to define what effect key variables, such as local government financial reserves, local deprivation indices and anticipatory financial management practices in local government should have on the determination of central government aid for individual local authorities.

Suggested Citation

  • Thomas Ahrens & Laurence Ferry, 2020. "Financial resilience of English local government in the aftermath of COVID-19," Journal of Public Budgeting, Accounting & Financial Management, Emerald Group Publishing Limited, vol. 32(5), pages 813-823, August.
    • Handle: RePEc:eme:jpbafm:jpbafm-07-2020-0098
    DOI: 10.1108/JPBAFM-07-2020-0098
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    Citations

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    Cited by:

    1. Alessandro Bellocchi & Chiara Lodi & Giovanni Marin & Giuseppe Travaglini & Matteo Zavalloni, 2025. "Floods, Public Budgets and Fiscal Resilience: Evidence from Italian Municipalities," Working Papers 2025.32, Fondazione Eni Enrico Mattei.
    2. Ricardo Lopes Cardoso & Ricardo Rocha de Azevedo & José Alexandre Magrini Pigatto & Bernardo de Abreu Guelber Fajardo & Armando Santos Moreira da Cunha, 2023. "Lessons from Brazil's unsuccessful fiscal decentralization policy to fight COVID‐19," Public Administration & Development, Blackwell Publishing, vol. 43(2), pages 106-119, May.
    3. Richard Machin, 2023. "UK local government experience of COVID-19 Lockdown: Local responses to global challenges," Local Economy, London South Bank University, vol. 38(1), pages 80-91, February.
    4. Davide Antonioli & Elisa Chioatto & Ginevra Coletti & Asia Guerreschi & Susanna Mancinelli & Massimiliano Mazzanti & Giuseppe Rocco & Emy Zecca, 2025. "Understanding Sustainability and Innovation: A Collection of Survey Evidence from Italian Contexts," SEEDS Working Papers 1725, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Dec 2025.
    5. Ghizlane Barzi & Bamousse Zineb, 2023. "Resilience at the heart of the financial function of companies: a lever for sustainability against the effects of crises in Morocco - Case of Covid-19 [La résilience au coeur de la fonction financière des entreprises : levier de pérennité contre l," Post-Print hal-04367540, HAL.
    6. Jijun Zhang & Peng Zang, 2024. "Analysis on the Coupling Coordinative Development Mechanism of Ecological Environment and Logistics Service Trade," International Journal of Information Systems and Supply Chain Management (IJISSCM), IGI Global Scientific Publishing, vol. 17(1), pages 1-16, January.
    7. Emanuele Padovani & Francesco Porcelli & Alberto Zanardi, 2024. "The determinants of the financial distress of Italian municipalities: How much is it due to inadequate resources?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(6), pages 1494-1533, December.
    8. repec:bcp:journl:v:5:y:2021:i:10:p:408-420 is not listed on IDEAS
    9. Contrafatto, Massimo & Mazzola, Laura & Pesci, Caterina & Nicolò, Domenico, 2024. "The translation of an extraordinary event and the role of accounts: The covid-19 case," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 100(C).

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