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By Martin Boddy, Colin Fudge
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Since 1976, both Labour and Conservative governments have Peter Saunders 37 pursued monetary targets involving cuts in local authority spending on social services, but only the latter has done so as a matter of principle . ' 21 Put into practice, this has involved the privatisation of the welfare sector by enforcing a market discipline in existing areas of state provision and then by transferring as much as possible to private ownership. The principle of social need as the criterion of access to services has in this way consciously and deliberately been eroded in favour of the principle of market eligibility.
Greenwood and J . Raine, In Defence of Lo cal Government (Institute of Local Government Studies, University of Birmingham, 1981); T . Burgess and T. Travers, Ten Billion Pounds (Grant McIntyre, 1980). 13. Detailed in C. 1,1983, pp . 1-7 . 14. Ibid . 2 Rethinking Local Politics PETER SAUNDERS Introduction In Britain, as in all other developed industrial nations, the scale and scope of state activity has expanded dramatically during this century. Before the First World War , total state expenditure represented one-eighth of the country's Gross National Product; today it accounts for over half.
The political problem The political problem confronted by central government in its relations with local authorities is how to pursue its long-term economic strategy in the face of popular demands and expectations Peter Saunders 35 expressed through local councils. The broad strategy for dealing with this problem lies in removing key policy-making powers from the democratic sector so as to insulate them from popular pressures and render them more amenable to central direction. In this way, the organisational restructuring designed in part to reduce the risk of radical take-overs of local councils, and the increased economic controls designed to regulate local consumption expenditure, have been reinforced by a shift away from democratic modes of interest mediation towards 'corporatist' modes in which only particular kinds of interests achieve formal representation.