ABSTRACT
In this chapter we set the scene for examining local – and regional – responses to recession by reviewing in broad terms the relationship between local authorities and local economies as this has developed historically in the UK over time, before moving on to look at different levels of responses and the actions and responsibilities of local authorities at the outset of the recession. In so doing, we consider how the nature and content of the local authority/local economy relationship has varied across the country in response to processes of uneven economic development, and how it has been affected by centralisation and decentralisation processes, by the shift towards markets, networks and partnerships, and by the openness of localities to European and wider global trends. We also reflect upon the role of local authorities in a world in which further globalisation may be constrained by the growing need to address climate change, leading perhaps to a desire to ‘relocalise’ certain activities as well as the perceived need to ‘rebalance’ the UK’s economy (NESTA 2010). In understanding the choices which have been made by councils, and the ways in which these have been constrained by central government and by other pressures, we then identify different perspectives on the role of the state (broadly defined) in intervening in the economy. We finish the chapter by looking at the actions and responsibilities of local authorities as the recession unfolded.
