Peter Hetherington

Battered by fourteen years of austerity, is local government losing its once-proud standing and status? Probably. For a start, It’s no longer as ‘local’ as it should be. And it certainly isn’t ‘government’ as we once knew it.

These days, we sometimes tend to lump ‘democracy’ and ‘crisis’ together in a global context, forgetting that close to our doorsteps – in countless civic centres, town and county halls – there’s another crisis: restoring faith in local democracy, while sustaining councils literally facing insolvency.

At a hybrid event, organised by the Centre for Urban and Regional Studies at Newcastle University, we asked a simple question at the start: Do we need a new, positive direction for once-powerful towns and communities where meaningful democracy has disappeared as local government has withdrawn?

We attracted a great range of speakers putting, broadly, two cases: first for a new local government structure in England based on economic geography embracing combined authorities for big city areas alongside large county-wide single purpose unitary authorities, underpinned by a more equitable funding formula; and, secondly, for varying degrees of town and parish governance, sustained by participatory democracy, including citizens assemblies, with powers – parks, libraries, leisure facilities for instance – devolved from existing larger authorities. Often, such an asset transfer is born out of necessity because larger councils can’t afford to keep them anyway and parishes/towns can raise money through a council tax precept while sometimes creating stand-alone community interest companies.

The case for a genuine new ‘localism’ appeared strong. That’s because, currently, a continuing process of abolishing councils to create larger units with few, if any, local roots has created a sense of powerlessness, a collective loss of identity with little or no attachment to people and places. Fifty years’ ago England had almost 1200 councils, from the smallest urban/rural district to the largest city. “We were run by our own,” recalled the writer, broadcaster and ultimate polymath Melvyn Bragg, in his 2022 memoir ‘Back in the Day’. Born in Wigton, Cumbria, his small town had a rural district council (which I knew well): “We could challenge the elected councillors who made the decisions” Bragg continued. “They were not a separate cadre…they were just people you had been to school with…(approach) on the street…to whom you could write a personal letter knowing it would be read, considered, answered.”

No longer. His council disappeared in 1974. Today, after several rounds of ‘reorganisation’ under the dubious label of efficiency – although there’s little concrete evidence of cost saving – that number has been reduced to 317, with little if any public debate. A forthcoming devolution White Paper is expected to advocate more reorganisation and even fewer councils in a country where local authorities already cover much larger areas than in mainland Europe.

Against this background, it’s probably no surprise that Carnegie UK, in its recent ‘Life in the UK’ index, reports that a lack of trust in politics and government is undermining collective well being. Three-quarters of people, says Carnegie, feel they can’t influence decisions. Surely reconnecting them begins locally. But how local?

If the government’s approach so far is a broad definition of ‘taking back control’, could an over-arching contradiction be emerging? Will the apparent obsession with more all-purpose councils, the prospect of an all-unitary England – similar to the structure in Scotland and Wales – make people feel even more distant from power, disaffected? Carnegie insists that restoring faith in democracy should be the Government’s ‘mission of missions’.

If that’s one challenge, there’s another, interlinked: the crisis of financing local government, with 7 councils theoretically insolvent and many more heading that way; legally, they can’t go bust and have been forced to borrow the equivalent of pay-day loans on a mega-scale to stay afloat, adding to a debt mountain. Now Conservative-run Hampshire has said issuing a section 114 notice – prelude to technical insolvency – is “almost inevitable”, with a sting of others close behind. And as Prof Andy Pike, and Jack Shaw have outlined in their recent excellent, but chilling paper (‘The geography of local authority financial distress in England’) 96% of English councils won’t balance their books by 2026-27.

Of course, alongside that unparalleled financial crisis in local government, we’re also facing an alarming democratic challenge nationally with the lowest turnout ever recorded in the recent general election; almost half the electorate didn’t vote! Surely, the place to renew trust in the democratic process begins at the grass roots, perhaps reviving some of the 10,000 town and parish councils, some of which want to take over functions from larger authorities (some are obliging out of necessity). Could this – call it double devolution – provide one small way forward?

I’m aware there’s a danger that events, like the latest one at CURDS addressing the crisis in local democracy, can produce a combination of hand-wringing and hot air. But, hopefully, we concluded with a practical, positive outcome. As Professor Jane Willis, geographer and champion of community empowerment – now in Cornwall- noted: “It’s not all gloom and doom – there is good news.” In her county, communities are taking back control, again out of necessity – a really positive story and a lesson for elsewhere? Willis advocates a new social contract under a layered system of local government to “re-franchise” people.

In the meantime, the chair of the event urged those present to make their views known to MPs, and the government, as the forthcoming devolution White Paper foreshadows a pre-legislative consultation process. As Professor Andy Pike, of CURDS, noted in summing up, one leading question needed answering above all: “What is local government for, and how to fund it?”

All we know so far is that the White Paper, according to the Treasury, will include …“working with councils to move to simpler structures that make sense of their local area with efficiency savings from council reorganisation helping to meet the needs of local people…”. Contradictory or otherwise – will more larger councils “make sense” of local areas? – we must surely intensify a campaign for a genuine new ‘localism’, embracing places, communities, towns and some cities now without any form of local government. That doesn’t necessarily mean sidelining the case for a new – and/or revised – local government structure in England tied to a ‘needs’-based funding formula. The current one favours the richer parts of the country and penalises the poorest with the lowest tax bases.

But the time for national government to act is during the first year or so of a new administration. It assuredly won’t go down well with the ‘middle England’ target readership of – say – the Daily Mail. There’ll be howls of protest. But it must be a priority to bring a sense of fairness to a deeply unequal country and, equally importantly, deliver some hope to voters in the so-called ‘red wall’ seats who either returned to Labour at the last election or voted for an ascendant Reform. We live in a fragile democracy. Restoring faith in government, local and national, begins in community, neighbourhood parish and town. We need the Labour government to think big and act local. We haven’t much time.

Peter Hetherington is a British journalist. He writes regularly for The Guardian on land, communities, and regeneration.  He is also a vice-president, and past chair of the Town and Country Planning Association, former regional affairs and northern editor of The Guardian and the author of the 2015 book, Whose Land is Our Land? The use and abuse of Britain’s forgotten acres, and the 2021 book, Land Renewed: Reworking the Countryside.