Navigating financial distress and perceived vulnerability to build (financial) resilience during austerity: An exploratory study on the responses to shocks in local government

Original

Navigating financial distress and perceived vulnerability to build (financial) resilience during austerity: An exploratory study on the responses to shocks in local government

Bernard Kofi Dom, Peter Murphy, Martin Jones, Alan Collins

Abstract

This study examines how English local authorities (LAs) responded to prolonged austerity and how their perceived vulnerability shaped the sequencing of strategic decisions over time. While financial shocks are well studied, less is known about how vulnerability is interpreted and how these interpretations influence responses. Using data visualization and elite interviews, the research explored how changes in perceived vulnerability influenced responses over time. Findings across three austerity eras, analysed using 3Rs and RPL models show that perceived vulnerability influences the timing and depth of strategic choices. The study links resilience with turnaround strategies, and offersa phased framework to support strategic planning under ongoing fiscal shocks.