ABSTRACT
This chapter explores the impact of the economy and ideology on central government activity and used ‘network’ theories as a framework to discuss the interaction between central government and the local authority. It shows how competition has placed significant strains upon actors and that the opportunities to initiate and shape policy have been curtailed. The chapter provides an account of the politics of Hackney Council. It presents a discussion of the key preoccupations within the council, including the attempt to decentralise services, accommodate the trade unions and oppose central government rate capping legislation. The chapter argues that the legacy of the 1980s retains an influence on contemporary policies. Strict financial curbs on local government spending became a defining feature of the Conservative administration from 1983-1990. In 1978/1979 66 per cent of local government expenditure derived from central government. Any form of political activity that is perceived as a threat by powerful interest groups generates a reaction.
