Drivers of reverse corporatization in English local government: A longitudinal analysis

Abstract

Local governments increasingly create and use corporate forms of organization to provide public services. While there is growing evidence on the factors influencing such corporatization, less is known about what leads some local governments to bring corporatized services back in-house. This paper investigates financial, socioeconomic, political and organizational drivers of reverse corporatization among 62 Arms-Length Management Organizations (ALMOs), wholly owned nonprofit organizations created by local governments in England to provide social housing services. Survival analysis for the period 2003–2019 suggests that reverse corporatization is more likely to occur in left-wing local governments and in those with more financial reserves, but is less likely if ALMOs have operated for a longer time and have a large board of directors. Points for practitioners Understanding of the drivers of reverse corporatization can help local politicians and public managers improve their decisions about the appropriate mode of delivery for local public services. This paper highlights that good fiscal health may be essential for efforts to bring corporatized service back in-house, but that well-established municipal corporations may be better left to continue operating. It is also important for policymakers to recognize the role that political ideology (and socioeconomic circumstances) can play in shaping a commitment to reversing corporatization.

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