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Time, Parties and Budgetary Change: Fiscal Decisions in English Cities, 1974–88

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.