Fiscal Stress: The New System of Local Government Finance in England

This paper assesses the impact of the reformed system of local government finance in England on the ability of local authorities to finance services for their communities. It is set within the context of fiscal stress and particular attention is paid to areas of urban stress. The preliminary findings are that inner city authorities face tighter financial constraints when attempting to improve service provision not just to residents but also to local business. Fiscal stress has been increased and local urban regeneration initiatives have been made more difficult.