This chapter article builds on the large but dispense body of work concerned with the local state and the role of local government therein. Set within the context of labour market and welfare state restructuring in neoliberalism, it suggests that there is an emerging consensus for a more robust and proactive involvement by local government. The chapter argues that initiatives for reactivating the local state have been deployed and tested in Denmark, with local government playing a central role in socioeconomic governance. It unpacks Denmark's 'welfare-through-work' model—a policy-making system built around negotiated and inclusive systems of regulation and governance—and highlights some of the still relevant lessons for re-engaging local authorities in the UK.
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