Corporatisation in the public sector: explaining the growth of local authority companies in England

To build knowledge around the antecedents of corporatisation in the public sector, we analyse the circumstances that lead English local authorities to use companies for the delivery of public services. Findings from analysis... [ view full abstract ]

To build knowledge around the antecedents of corporatisation in the public sector, we analyse the circumstances that lead English local authorities to use companies for the delivery of public services. Findings from analysis of 150 English single and upper-tier authorities for 2010-2016 suggest that authorities grappling with higher levels of debt are more involved in the creation and operation of companies, as are those that are larger, less densely populated and those operating in areas of socio-economic disadvantage. Further analysis reveals that very low and very high managerial capabilities are strongly associated with involvement in profit-making companies, while expenditure cuts are associated with greater local authority ownership of companies. Theoretical and practical implications are discussed.