Democratic renewal

Forget the temperature, for councillor discretion, look north!

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Photo by Michael D Beckwith on Pexels.com

Chris Game

You may just possibly have seen the recent report: “Oldham councillors must repay overpaid allowances due to payroll error”.  And thought: “Mmm – sounds a bit tough; surely councillors don’t organise their own payments?” 

Surely it would be the Council Treasurer’s responsibility, or his/her staff – probably his, given that the senior echelons of the local government treasury profession are around three-quarters male?  After all, they’re the ones who ran the faulty allowances system and must have, repeatedly, made the faulty calculations. 

You might indeed suppose so, but it’s not what happened here. Those 82 Oldham councillors were, it seems, overpaid a (combined!) total of £104,000 due to a systemic error, or rather errors, repeated apparently over at least three financial years.

The error was acknowledged as an administrative one, by council staff, and the salaries of those responsible are being docked accordingly; in particular the Director of Finance, whose six-figure salary (of, coincidentally, £104,000!  No, I’m totally guessing that bit!) could at least bear it. You might suppose?

However, that’s NOT at all how our local government division of responsibilities between elected councillors and salaried officers works. Here the whole £110,000 is having to be repaid by the innocently benefitting councillors – who most certainly don’t get dockable salaries.

So what are actually being ‘docked’ here are the relevant councillors’ basic and ‘Special Responsibility’ allowances, the latter being for those in various leadership positions: cabinet members, chairs of committees, party group leaders, and suchlike. 

Oldham is generally a Labour-led council and currently ‘ordinary’ council members receive a Basic Allowance of roughly £12,000. Other Member Allowances include the Council Leader £43,000, Deputy Leader £26,000, Executive Members £22,000, the Mayor £17,000, Chairs of various Scrutiny Boards – Licensing, Planning, Children & Young People, Health & Wellbeing, etc.- £11,000. It’s hardly megabucks.

In short, elected councillors are being made to pay, from their modest responsibility allowances, for ‘administrative errors’ made over several years by the council’s administrators – the clue’s in that adjective!

It seems wrong in principle, and it’s also horribly mistimed, coming as it does when some genuine efforts are being made to increase the perceived attractiveness of the councillor role and thereby extend the range of socio-economic backgrounds from which our local representatives are drawn.

Just a few weeks ago, for instance, at Labour’s party conference, Communities Secretary Steve Reed – a council Leader himself before becoming an MP – announced that he would be restoring councillors’ access to pensions through the Local Government Pension Scheme that the Conservative Government had removed. There is also talk of improving parental leave and reviewing the allowances system.

And not before time. For few in local government seriously doubt the deterrent impact on councillor recruitment of the 2012 removal of pension entitlement by the then Minister for Communities and Local Government, Eric (now Lord) Pickles.

Former Leader of Bradford Council, Pickles knew exactly what he was doing, as he increased councils’ financial discretion, while cutting considerably the funding over which to exercise it, and his patronising ’50 money-saving tips’ were contributing to the dire financial straits so many councils have found themselves in since.

At which point – in the distant past, when I was lecturing regularly and having to produce student ‘handouts’ – I’d probably have referred to a few overseas examples, showing how relatively demanding the English councillor’s role is and how under-compensated our councillors generally are.  

First, and most obviously, there’s the potential workload, very crudely illustrated by the average number of electors per councillor: 120 in France, 250 in Sweden, 2,350 in Ireland … and (currently) 2,600 in the UK as a whole.

Then the councillor payment systems: England – a basic allowance of, typically, £10,000 – £12,000 p.a., plus a bit extra for ‘Special Responsibilities’, and (wow!) expenses for travel and childcare.

By comparison, or contrast: the USA – highly variable, obviously, but an average US councillor’s salary is currently around $51,000 (£39,000), rising in New York, where everything’s gross, to $148,000 (£113,000).

Back in the real world, at the other end of the spectrum, are Norway/Sweden, where the councillor role is still generally considered voluntary, with councillors receiving ‘modest’ allowances to cover costs.  

They’re quite fun, but these international comparisons/contrasts aren’t terribly helpful in considering the future of English local government. Or necessary, as, on the proverbial doorstep we have sensible Scotland, where, nearly 20 years ago now, they switched from our patronising, cheeseparing ‘allowances’ system to actual councillor salaries – of currently, and precisely, £25,982.

That’s the basic salary. Senior councillors will generally receive a higher salary, up to perhaps around £50,000 for a Council Leader, with councils themselves having the ‘grown-up’ discretion of paying senior councillors up to 75% of the Leader’s pay.

And there’s more. Scottish councillors are eligible to join their Local Government Pension Scheme, to payment of allowances for subsistence and travel, and reimbursement of expenses incurred when undertaking council duties – a regular source of dispute ‘darn Sarf’.

Which brings me to my closing thought. Oldham, where we started, is almost exactly midway between London and Edinburgh, and local authorities in both England and Scotland are financially, in my view, heavily over-dependent on their respective central governments. But, if a student asked me in which country I’d prefer to be an elected councillor, I’d say: “Never mind the temperature, choose the occupational discretion”  

This post appeared initially in The Birmingham Post edition of Thursday, December 11th.

Chris Game is an INLOGOV Associate, and Visiting Professor at Kwansei Gakuin University, Osaka, Japan.  He is joint-author (with Professor David Wilson) of the successive editions of Local Government in the United Kingdom, and a regular columnist for The Birmingham Post.

Intervention 3.0: Designing a Responsive Model for Local Government Support in England

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Jason Lowther / Paul Joyce / Philip Whiteman

The arrival of the new UK government looks set to result in a new policy on central government’s intervention powers in local authorities, the third generation of such policies this century.  This article suggests some key lessons from earlier models. 

Intervention 1.0 was facilitated by Best Value legislation that an “authority must make arrangements to secure continuous improvement in the way in which its functions are exercised, having regard to a combination of economy, efficiency and effectiveness” (Local Government Act 1999).  This remains the basis of statutory interventions today.  But the context could not be more different. 

The Blair government commissioned an extensive set of national performance indicators, developed independently by the Audit Commission with a common definition and quality assured through local audits.  The “District Auditor” role maintained in depth contextualised knowledge of each local council, and could identify and flag significant governance or performance issues at an early stage.  As well as diagnosing problems, the Audit Commission’s national studies provided evidence-based recommendations to help improve local services’ economy, efficiency and effectiveness.

The strengths of this model were the comprehensive nature of the evaluation, its collective and mutually supportive use of expert agencies to provide an evidence base, and the sanctions that went with it including transparent public reporting.  Inlogov produced a series of reports diagnosing and explaining the causes of poor performance, analysing recovery planning and strategies for organisational recovery, evaluating various policy instruments for recovery (such as lead officials) and identifying the key developmental mechanisms for recovery. 

Our reports clearly demonstrated that the context for poor performance determines effective mechanisms for recovery: one size definitely does not fit all.  The causes of failure are varied, such as ineffective leadership arrangements and inadequacies in the operating culture. 

Improvement mechanisms need to address issues of cognition, capability and capacity.  Cognition is the council’s awareness and understanding of their performance trajectory, which is often resilient to changes in political control.  Capability concerns the construction and institutionalisation of a change-oriented vision by council leaders.  Finally, capacity is the ability to deliver the required vision and change. The required change mechanisms are both internal (such as leadership change) and external (for example, peer mentors, expert advisors, and funding). 

Intervention 2.0

The arrival of the Coalition government in 2010 brought rapid changes to intervention.  The Audit Commission was summarily discarded, publicly justified by claimed savings of £50m.  In reality, recent research by the Audit Reform Lab at the University of Sheffield suggests that English audits have higher costs and greater delays than in Wales or Scotland (where centralised oversight arrangements were maintained). 

From 2010 to 2020, central government intervention was relatively rare with formal interventions in only four councils.  However, from 2021 this situation changed substantially with interventions in eight councils in three years (none of these councils were controlled by the ruling national party).  In the same three years, there were statutory best value notices in a further nine councils.

It’s fair to describe this phase of intervention as less structured and evidence-based, without robust national data or independent routine inspection of councils.    

There has been limited evaluation of Intervention 2.0 to date.  Our early research findings based on three case studies suggest a five-stage model of intervention: (i) crisis revelation, (ii) delegitimisation, (iii) imposed reforms, (iv) capacity building, (v) restoration or reorganisation.  We conclude that under localism interventions were not merely administrative responses to failure but were deeply political acts that reshaped the legitimacy and capacity of local governance. The Commissioners, acting as technocratic agents of central government, connected central and local government, and had the effect of buffering the political tensions of intervention, while leading a process in which managerial competence rather than local democracy steered intervention.

Where next for intervention?

The raft of interventions related to section 114 notices, the establishment of the new Local Government Outcomes Framework and local audit reform including the Local Audit Office indicate a new phase of intervention and open opportunities to develop a more systematic and evidence-based approach.  More thought is needed on how this should work in future, including the role of peer reviews and inter-council support arrangements.  The centralisation of intervention power and the dominance of technocratic intervention needs to evolve to suit devolution and to provide greater support for local democracy. This could build on the new audit arrangements through a “district auditor” type overview of governance.

The acid test of reforms should be that while central government would still be able to intervene when councils were failing, the intervention process would minimise the suspension of local democracy, do as little damage as possible to the public’s trust in their local council, and foster good local democratic political leadership.

This article first appeared in the Municipal Journal on 16 October 2025 titled “How not to damage democracy”. It is available here: https://www.themj.co.uk/damage-democracy

Dr Jason Lowther is director of INLOGOV (the Institute of Local Government Studies) at the University of Birmingham.  Prof Paul Joyce is an Associate at INLOGOV.  Dr Philip Whiteman is a lecturer on public policy and administration at INLOGOV.

Supporting councillors to thrive: the 21st Century Councillor Revisited

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Catherine Needham

In our research on the 21st Century Councillor, we’ve found that elected members are facing a barrage of challenges:

  • Perma-austerity has deepened with sustained underfunding of public services  
  • Complexity of place has intensified, through combined authorities and integrated care systems, alongside local government reorganisation.   
  • Communities are in distress, moving from the pandemic straight into the cost-of-living crisis   
  • Incivility in public life has grown with rising issues of abuse and harassment for councillors in particular 
  • The rising profile of equality, diversity and inclusion has drawn attention to how public services systematically fail some workers and citizens  
  • Remote and hybrid working can enhance individual flexibility but can make it more difficult for councillors to build the relationships they need to function effectively. 

From interviews with councillors, we heard about the strategies they use to cope with these challenges and to support their communities to thrive. They are keeping the system human on behalf of communities. They are zooming in and out, from the micro issues facing residents to the big strategic issues of place. They act as a lightning rod, absorbing hostility whilst keeping themselves grounded and safe. You can read more about the research findings here.

If you’re a councillor – or you work in a role supporting councillors – come and join us in Andover on 4 November to hear more about this research and chat to peers about how best to manage these challenges. You’ll also hear from the Local Government Chronicle about their new campaign to support councillors.

Click here to register: 21st Century Councillors Tickets, Tue, Nov 4, 2025 at 10:00 AM | Eventbrite

From Consultation to Co-Creation: How Birmingham Can Lead the Way in Participatory Governance

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Susana Higueras and Sonia Bussu

In a time of growing inequality, political disillusionment, and institutional strain, Birmingham is at a crossroads. The city’s bold initiative, Shaping Birmingham’s Future Together (SBFT), offers a timely and transformative opportunity: to reimagine how local government works with its communities.

A new report by Susana Higueras and Sonia Bussu lays out a compelling roadmap for how Birmingham City Council (BCC) can become a participatory council. Drawing on UK and international examples, as well as interviews with local stakeholders, the report argues that participatory governance must be more than a buzzword. It must be embedded into the everyday workings of the council, grounded in inclusive practices, and driven by a genuine commitment to share power.

Why Participation, Why Now?

Birmingham is one of the UK’s most diverse and youngest cities. This diversity is a strength, but also a challenge when it comes to ensuring that all voices are heard in policymaking. At the same time, the city faces deep structural inequalities, including the highest child poverty rates in the UK. Traditional top-down governance models are no longer fit for purpose. What’s needed is a shift from consultation to co-creation.

The SBFT partnership, launched in 2024, aims to tackle these challenges by fostering collaboration across public, private, and community sectors. But as the report makes clear, this vision will only succeed if participation is embedded, not treated as an add-on or a one-off event.

What Does Embedded Participation Look Like?

Embedded participation means making citizen engagement a routine part of how decisions are made, from setting priorities to evaluating outcomes. It requires:

  • Facilitative leadership that enables collaboration and power-sharing;
  • Boundary spanners, or individuals who bridge the gap between institutions and communities;
  • Strong partnerships with civil society, grassroots, and voluntary organisations;
  • Intersectional inclusion that centres the voices of those facing multiple, overlapping barriers to participation.

The report highlights that successful participatory governance is not about flashy new tools or one-off events. It’s about culture change, within the council, across sectors, and in how communities are engaged.

Lessons from Elsewhere

The report draws on global examples to show what’s possible, and what pitfalls to avoid.

  • Porto Alegre, in Brazil, was a trailblazer in participatory budgeting, enabling residents to directly allocate public funds, at one point transferring over $300 per person annually to community control. However, as political leadership shifted, the commitment to the process waned, and budget allocations steadily declined, leading to a loss of momentum.
  • Barcelona, Spain, embedded citizen participation through digital platforms like Decidim and cultivated strong ties with social movements. At its peak, over 40,000 citizens engaged in budgetary decisions. Yet, the experience underscores the vulnerability of transformative initiatives when overly reliant on charismatic leadership, making them susceptible to political cycles.
  • Camden, London, institutionalised citizens’ assemblies, integrating them into formal decision-making structures. Notably, all 17 citizen recommendations on climate policy were adopted. Still, challenges persist around ensuring inclusivity and maintaining consistent follow-through.
  • Reykjavik, Iceland, leveraged digital platforms to crowdsource citizen ideas and implement participatory budgeting. Initially successful in mobilising thousands of residents, the initiative faltered as political support diminished and the platforms remained peripheral to formal governance, highlighting the limitations of digital participation without institutional anchoring.
  • Ostbelgien, Belgium, established the world’s first permanent deliberative system linked to a legislative body. Its legally enshrined Citizens’ Council and Assemblies offer a promising model of democratic stability and accountability. However, the top-down design and limited community ownership reveal the critical need for co-creation and inclusive recruitment to prevent the reinforcement of existing inequalities.

These examples show that embedding participation requires sustained commitment, institutional support, and mechanisms for accountability.

Opportunities in Birmingham

Despite the challenges, Birmingham has a strong foundation to build on:

But There Are Challenges Too

The report doesn’t shy away from the barriers:

  • Broken trust: Communities are tired of being consulted without seeing change.
  • Hierarchical leadership: A top-down culture limits innovation and responsiveness.
  • Structural silos: Departments often work in isolation, duplicating efforts and missing opportunities for collaboration and nurturing citizen participation.
  • Unfair funding mechanisms: Smaller community organisations feel sidelined and overburdened by bureaucracy.

These challenges are not unique to Birmingham, but they must be addressed head-on if SBFT is to succeed.

What Needs to Happen Next?

The report offers a clear set of policy recommendations.

Rebuild trust through transparent communication and visible follow-through.

Trust has been eroded by repeated consultations without tangible outcomes. BCC must commit to clear feedback loops, visibly acting on community input and explaining decisions transparently to rebuild credibility and legitimacy.

Embed participation in budgeting, service design, and scrutiny processes.

Participation should not be limited to one-off events; it must be embedded across governance functions. This can include participatory budgeting, citizen panels, and co-designed scrutiny mechanisms that give residents real influence over public decisions.

Foster facilitative leadership and cross-sector collaboration.

Leadership must shift from command-and-control to facilitation, enabling shared power and collaborative problem-solving. Cross-departmental working groups and partnerships with civil society can help break down silos and foster innovation.

Work better with communities, recognising them as co-creators, not just consultees.

Community organisations should be treated as equal partners, with fair funding, early involvement in policy development, and recognition of their expertise. This means moving from consultation to co-creation, where communities help shape solutions from the outset.

Design for intersectional inclusion, addressing overlapping barriers to participation.

Inclusive participation requires acknowledging and addressing systemic inequalities. Councils must create safe, accessible spaces and use diverse engagement methods, including arts-based approaches and multilingual formats, to ensure marginalised voices are centred and valued.

The SBFT partnership can be a catalyst of this change and become the space for shared governance and accountability.

A Call to Action

The SBFT initiative is more than a policy programme, it’s a democratic innovation. It’s a chance to reshape how power is shared in the city, how decisions are made, and how communities are valued. As one community leader put it: “We’re not asking to be asked. We’re asking to lead.”

If Birmingham can rise to this challenge, it won’t just be shaping its own future. It will be setting a national, and even global, example of what inclusive, embedded participatory governance can look like in the 21st century.

SBFT Report_ final_Oct 2025_WEBDownload

DOI: https://doi.org/10.48352/inlogov.bhamx.0001

Dr Sonia Bussu is an Associate Professor at the University of Birmingham Department of Public Administration and Policy where she studies and teaches public policy. Her main research interests are participatory governance and democratic innovations, and creative and arts-based methods for research and public engagement. 

Susana Higueras Carrillo is a Peruvian anthropologist. She is PhD candidate at Goldsmiths, University of London and holds a master’s degree in Environmental Governance from the University of Oxford. She has worked at the University of Birmingham in the INSPIRE (Intersectional Space of Participation: Inclusive, Resilient, Embedded) project researching how to strengthen intersectional inclusion through arts-based methods such as legislative theatre. Her research interests lie in environmental and social justice and communicating research in creative and impactful ways.

Renewing Democratic Leadership

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Jason Lowther and Sonia Bussu

Legislative Theatre with West Midlands Combined Authority

As local government in England undergoes significant restructuring, with fewer councils serving larger and more diverse populations, the role of councillors is under pressure. At the same time, democratic innovations, such as citizens’ assemblies, or creative methods of participation, such as legislative theatre and digital engagement, are gaining traction. These innovations offer new ways to engage communities and strengthen democratic legitimacy.  But how do they fit with the role of elected councillors?

Recent research and practice suggest that councillors can play a crucial role in facilitating inclusive and impactful citizen participation.

Politicians’ Views on Participation

Across the UK and Europe, many elected representatives have expressed support for citizen participation in policymaking. They see it as a way to build trust, improve decision quality, acknowledge a wider range of perspectives and knowledge, engage citizens more deeply in political life, and potentially identify novel solutions to politically difficult issues. However, research by Kersting shows that this support is often conditional. Councillors tend to favour participatory instruments that reinforce their representative role, such as advisory boards or structured consultations. They are more sceptical of online platforms and randomly selected citizen assemblies (so-called minipublics), which they worry may not be genuinely representative of their electorate and may lack the capacity to understand complex issues.

Werner and Marien’s comparative experiments in Sweden and the Netherlands provide further insight. Their work shows that participatory processes consistently increase perceptions of fairness. This matters because fairness perceptions are closely linked to trust, policy compliance, and perceived legitimacy. Importantly, these effects are not limited to winners (who support the outcome of the exercise); even those who lose in participatory decisions tend to view the process more positively than in purely representative settings.

These findings highlight a tension. While democratic innovations can enhance legitimacy, councillors often feel uncertain about their role within them. Without open discussion, clear support, and integration, these processes risk bypassing councillors altogether.

Reimagining the Role of Councillors

Inlogov’s 21st Century Councillor research offers a compelling framework for renewing councillors’ roles. It describes councillors as hybrid connectors who build relationships both online and offline, multi-level diplomats who navigate partnerships across governance layers, and system stewards who shape democratic innovation and institutional change.

To fulfil these roles, councillors need support. This includes help to understand democratic innovations and any potential concerns.  They need understanding of key areas such as facilitation skills and digital engagement, confidence in narrative-building around democratic innovation, access to mentoring from peers with experience of these approaches, opportunity to explore difficult scenarios, and chance to reflect on their practice. Councils must also empower community members to scrutinise participatory outputs, and help councillors to navigate tensions between citizen input, officer advice, and party lines.

The Camden Model: Embedding Participation

Camden Council offers a practical example of how participatory processes can be embedded within representative governance. The council has institutionalised citizens’ assemblies as regular tools for major policy development, including planning, climate change, and health and social care. Assemblies are commissioned by council boards, which commit to formally responding to recommendations. In the case of the 2019 Climate Assembly, all 17 proposals were endorsed and integrated into Camden’s Climate Action Plan, with the citizen’s assembly referenced throughout the document.

This approach demonstrates how local government can lead participatory processes, ensuring they are not just consultative exercises but integral to policy development. However, several recommendations from the Camden climate assembly extended beyond the council’s jurisdiction, highlighting the structural limitations of local deliberative processes in addressing systemic issues like the climate. Councillors could have played a stronger bridging role, helping to clarify expectations and ensure that recommendations were grounded in the council’s remit. Stronger involvement from elected representatives might have thus enhanced democratic accountability.

Inclusive youth engagement in policymaking in the West Midlands

There is much more to learn and do to make democratic innovations more inclusive and effective, supporting participation from historically marginalised groups, which tend to ignore invitations to participate in citizen assemblies or formal consultation exercises.

A recent example of inclusive approaches comes from the West Midlands, where the INSPIRE project, led by the University of Birmingham, used legislative theatre to engage young people in shaping youth employment policy. Legislative theatre is a method developed by Augusto Boal that uses performance to explore lived experience, test policy interventions, and co-create solutions. It involves watching a play co-created by the participants on real issues and based on their lived experience. During the event, an audience of community members and policymakers become spect-actors, acting out alternative scenarios, proposing policy changes, and voting on them in a public forum.

The University of Birmingham partnered with the Young Combined Authority and Youth Focus West Midlands to recruit a diverse group of 15 young people (14-17 years old) who, under the guidance of legislative theatre practitioners, developed a play about barriers to work experience and youth employment. Through performances and structured dialogue with policymakers, they co-created six policy proposals. These include reforms to careers advice, work experience, and employer accountability.

Crucially, policymakers were invited to participate not just as observers but as co-creators and champions. Their involvement can help bridge the gap between lived experience and institutional action, demonstrating how local government can play a central role in democratic innovation for social change.

Councillors as Democratic Innovators

Democratic innovations in Camden and the West Midlands are two examples of how local government can promote democratic renewal. Councillors can and should play more central roles in these processes, beyond party politics, to facilitate and nurture dialogue between citizens and institutions, ensuring follow-through on recommendations, and using committee structures to embed participatory outputs.

Rather than seeing participation as a threat, councillors can embrace it as a tool to strengthen their representative role and reconnect with communities. They are uniquely positioned to bridge the gap between citizen voice and institutional action. This requires a shift in mindset and practice.

Dr Jason Lowther is Director of Inlogov (the Institute of Local Government Studies) at the University of Birmingham, and was Assistant Director (Strategy) at Birmingham City Council from 2004 to 2018.  His research focuses on the use of evidence in public policy and central intervention in local government.

Dr Sonia Bussu is an Associate Professor at the University of Birmingham Department of Public Administration and Policy where she studies and teaches public policy. Her main research interests are participatory governance and democratic innovations, and creative and arts-based methods for research and public engagement. 

This article was first published in the Municipal Journal, 25th September 2025, available online here: https://www.themj.co.uk/renewing-democratic-leadership

Picture credit: Inspire Legislative Theatre, March 2025 – photo by Bucuria Maria Polodeanu – Insta: @reelmasterproduction

Openness of council finances is key for a functioning democracy

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Matty Edwards, Research For Action

Local authorities are under immense pressure to find savings whenever they can. After more than a decade of austerity, the collective deficit in the sector is expected to reach £9.3bn by next financial year. Local authority finances have also become increasingly speculative, as budgets are prepared on the basis of unpredictable grant allocations and single-year financial settlements, sometimes without audited accounts. Pressures to find new sources of income through commercial investments and private sector partnerships have also increased the complexity of council funding.

This creates a challenge: scrutiny of local government finance is more important than ever. Yet even with the best intentions, local authorities struggle to produce open and accessible financial information. 

In a research collaboration between Research for Action and the University of Sussex, we set out to explore how financial information — such as council budgets and accounts — could be made more accessible to the public. Our research found that even experienced researchers, accountants and councillors struggle to find and understand local authority financial information.

We spoke to 26 people from the local government sector over three months this spring to examine barriers to making local authority financial information accessible to councillors and the wider public. Interviewees included councillors from a range of authorities, council officers, academics, accountants, journalists and key sector bodies like CIPFA. 

Our key findings were a lack of standard reporting requirements, strained council capacity after years of austerity and a fragmented data landscape with no standard formats for publishing financial information. These barriers make it difficult to understand a single council’s finances and make comparisons across the sector, hindering effective scrutiny by councillors and journalists, and democratic participation by the public. 

Some interviewees argued that accessibility was less of a priority in the face of a mounting crisis in local authority finances, but in our view, openness is not a luxury. It is key to effective local democracy. 

How to improve open up council finances

Based on our findings, we set out a series of recommendations for greater transparency and openness. 

The government should introduce new data standards for local government to improve accessibility, potentially via a Local Government Finance Act. This should include making financial information machine readable where possible and using accessible file formats. An easy win in this area would be to create a single repository for all local government financial information.

Local audit reforms are also an important piece of the puzzle. The new Local Audit Office (LAO) should be made responsible for local government financial data, including making it publicly available with tools to enable comparison and oversight. A more ambitious idea for the new LAO could be to create a traffic light warning system for the financial health of local authorities based on indicators that are timely and easy to understand, taking inspiration from Japan. 

Council accounts were highlighted as a particularly technical and opaque part of local government finance. That’s why councils should be mandated to attach a narrative report to their annual accounts, as previously recommended by the Redmond Review.

We think that the Local Government Data Explorer, recently scrapped, should be replaced with a data visualisation that is genuinely accessible and interactive, perhaps taking inspiration from a dashboard created by academics in Ireland. There should also be funding for local open data platforms, because there have been isolated examples of successes, such as the Data Mill North. 

The other part of the problem is that councillors often don’t have the knowledge and skills to properly scrutinise the complicated world of local government finance. That’s why we’re calling for greater support and training for councillors to enable better financial scrutiny, as well as public resources to improve literacy around local government.

While the sector faces great upheaval in the next few years through local government reorganisation and English Devolution, these reforms also present an opportunity to improve transparency – whether that’s at unitary or combined authority level. 

We believe that greater openness will ultimately facilitate better public participation and healthier local democracies.

Matty Edwards is a freelance journalist based in Bristol who also works for Research For Action, a cooperative team of researchers that in recent years has investigated PFI, LOBO loans, the local audit crisis and scrutiny in local government.