The local government response to austerity in a small devolved country: the case of Wales

The 2008 Global Financial Crisis and subsequent austerity drive across Europe and North America has been particularly felt at a local government level. Wales presents a valuable case study through which to explore the impact of austerity on local government: it is a small country with a devolved government that is philosophically opposed to austerity, yet where cuts to local government have been drastic. Drawing on interviews with Welsh councils and key stakeholders, this paper explores three approaches councils have taken to managing austerity – efficiency, investment, and retrenchment – and finds that councils were already at a financial ‘tipping point’ before the pandemic. This paper concludes by considering the lessons that could be applied to the new challenge of recovery from the Covid-19 pandemic