Much research focusing on the welfare state is based on the assumption that welfare regimes are homogenous entities. This idea is supported by studies analysing cash benefits. In the area of welfare services, however, local governments in most countries have some autonomy regarding policy formation as well as the design and implementation of policies. In practice, substantial local differences exist with regard to the provision of welfare services, which in turn challenge our conception of nation-wide homogenous welfare state regimes. This paper examines the factors causing marked differences in local government spending in the provision of care for older people in Denmark. The conclusion is that the wealth of the municipality, local demographics and privatisation can explain about 48 per cent of the differences in local government spending. Political factors such as the 'colour' of local government have no explanatory power, while a high percentage of women in municipal councils appears to have a slightly negative effect on spending.