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This article is concerned with the shift away from local government, with its emphasis on direct service provision by elected local authorities, to a system of local governance, in which authorities play roles as client, enabler and partner to a variety of private, voluntary and community organisations. The empirical focus of the paper is the City Challenge initiative, introduced by the British government in 1991. Drawing on interviews with the key actors involved with the initiative in Bristol, the paper explores the extent to which City Challenge opened up the policy making process, and seeks to explain why Bristol became almost the only city to fail to secure funding in two successive rounds of City Challenge bidding.
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