Budgetary stewardship, innovation and working culture : Identifying the missing ingredient in English and Welsh local authorities’ recipes for austerity management

Drawing on fieldwork with 70 local authorities in England and Wales, this article builds on previous studies of austerity management by highlighting the importance of organisational cultures to achieving strategic objectives. It finds that, in line with their prevailing “belief system” of budgetary stewardship, local authorities in both countries are holding down input costs to deal with austerity. However, the scale of funding cuts means this strategy is unlikely to be successful over the longer term. Instead, they need greater freedom to generate revenue, in order to facilitate innovation and develop more sustainable business practices and service models.