funding

Job half done, it’s time to tackle council tax

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Jason Lowther

It’s hard to deny that the local government finance settlement this month marks big achievements for the ‘new’ (now almost two years old) government.  Labour’s manifesto promised that “to provide greater stability, a Labour government will give councils multiyear funding settlements”, and the new finance settlement duly covers three years.  By the end of this multi-year Settlement in 28-29, Core Spending Power will have increased by over 24% compared to 2024-25, equivalent to £16.6 billion.  And this increased amount is distributed in line with a new formula designed better to match resources to needs (albeit with £440m last minute tinkering).  There is much to celebrate here, which should give the government confidence to tackle another elephant in local government’s room: council tax.

Everyone knows that the council tax system is bad.  It’s outdated (based on 1991 values, before an eighth of current housing was built), highly regressive (people in cheaper homes often pay a higher proportion of their property value than those in expensive homes), regionally unfair (a recent article in the i newspaper found 292 council areas across England paying higher rates of council tax than they would in the wealthy Royal Borough of Kensington and Chelsea), and over centralised.

As Inlogov recommended to last year’s Select Committee on The Funding and Sustainability of Local Government Finance, the Government should start to improve council tax by amending council tax bandings and giving discretion on the details of the scheme’s design locally, such as the rates in each band and discount/subsidy arrangements.  The committee’s chair commented that “councils are trapped in a straitjacket by central government, with local authorities lacking the flexibility or control to devise creative, long-term, preventative solutions which could offer better value-for-money”.

There are already tentative moves to reform Council Tax in the different nations of the UK.  The Scottish Government no longer caps council tax increases but leaves this decision to local elected representatives.  This year’s Scottish Government budget also funded a revaluation of the highest value properties, with higher bands for properties valued over £1m (compared to the current highest band of £212,000), a change expected to affect around 1% of properties.  This is less radical than most of the options considered in the IFS report the Scottish Government commissioned to inform its decision.  In Wales, properties were revalued in 2003 and an additional council tax band above the highest band in England introduced.  In Northern Ireland, domestic rates are based on 2005 prices and a percentage rate applied.

In the long term major transformation of local government funding is required, as the Select Committee concluded:

In the long term, only true transformation, supporting a clear vision of what the role of local government should be, can make the local government funding system fair and effective. Beyond mere stabilisation, the Government must consider approaches to strengthen the system, including allowing councils to set their own forms of local taxes such as tourist levies, and placing stronger responsibility on central government to fund the services it requires local authorities to deliver. Central government, so used to its tight control of local government’s purse strings, must learn to ease its grip and let councils have more power to control their own affairs, accountable not to Westminster, but to their own local electorates.

As the government enters its third year, agreeing long term plans for local taxes could make a big contribution to the “change” they promised and turbo charge the real devolution we need.

Dr Jason Lowther is director of the Institute of Local Government Studies (INLOGOV) at the University of Birmingham. He was previously Assistant Director (Strategy) at Birmingham City Council and has worked at the West Midlands Combined Authority, Audit Commission and Metropolitan Police.

Are deferred local elections the real threat to UK democracy?

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Jason Lowther

With dozens of English councils and hundreds of councillors facing delays to this year’s May elections, opponents claim the move could undermine public trust in democracy.  History shows deferral of elections in similar circumstances is rare but not exceptional.  There are however far bigger threats to the UK’s democracy.

Media reports today are suggesting that more than a third of eligible English councils have requested to delay their planned May 2026 local elections, potentially requiring around 600 councillors to serve an additional year.  These councils state that the Government’s ongoing local government restructure makes it difficult to run the polls effectively at the planned dates, and central government claims holding elections for councils that are soon to be abolished would waste time and money.  

But the delays have sparked criticism, and even led to unrest at this week’s Redditch council meeting. Opponents argue the move weakens democratic accountability.  Reform UK leader Nigel Farage denounced the proposal as “monstrous”, claiming that “denying elections is the behaviour of a banana republic” and threatening a judicial review.  Conservative and Liberal Democrat MPs have also criticised the move.  The Electoral Commission’s chief executive said: “As a matter of principle, we do not think that capacity constraints are a legitimate reason for delaying long planned elections. Extending existing mandates risks affecting the legitimacy of local decision making and damaging public confidence.”

Delays to local elections in England have occurred previously.  During the Second World War, all local elections were suspended between 1939 and 1944, making this the most extensive postponement in modern history.  In peacetime, delays have largely been tied to local government reorganisation, most notably in the 1990s, when Parliament approved major structural reforms that abolished counties such as Avon, Cleveland, and Humberside and created 46 new unitary authorities.  These reforms led to altered or cancelled election dates to align with the establishment of new councils and avoid electing councillors to authorities that were about to be dissolved.  In 2025, nine councils had their elections delayed by one year to support transitions to new unitary structures.

But even though there are clear precedents for the current electoral postponements, there are other longer-term, more significant and worrying trends which risk seriously undermining our democracy.  Academic commentary shows growing concern among constitutional scholars that the UK’s democratic safeguards have weakened in recent years.  

Scholars at the UCL Constitution Unit  warned in 2022 that the UK faced a real risk of “democratic backsliding,” defined as a gradual erosion of checks and balances, growing executive dominance, attacks on civil liberties and the weakening of political norms that traditionally safeguarded constitutional stability.  Their analysis emphasised that democratic decline can occur incrementally through the actions of elected leaders, especially in systems like the UK’s where constitutional rules are flexible and can be rapidly altered.  

Further alarm was raised by Professor Alison Young at the University of Cambridge, who described the UK as standing on a “constitutional cliff‑edge.”  In her 2023 book, she argued that a series of constitutional changes and executive‑centric reforms have strengthened government power while weakening the political and legal checks that previously constrained it.  Young warned that without reforms to reinforce accountability, transparency, and oversight, the UK risks drifting towards “unchecked power,” eroding the democratic norms that underpin good governance.  

Last year, Dr Sean Kippin of the University of Stirling argued that recent Conservative governments engaged in “democratic backsliding” by deploying what he calls an “illiberal playbook,” using both lawful and legally dubious tools to weaken institutional checks, restrict protest rights, and compromise the independence of the Electoral Commission. His research concludes that “between 2016 and 2024, the Conservatives used power to diminish, weaken, and compromise Britain’s already imperfect democracy”.

There have been some positive moves by the ‘new’ Labour government to improve the functioning of our democratic system, such as the widening of voter ID criteria and promises to lower the voting age to16. However, overall there hasn’t yet been commitment to fundamental reforms to address the issues identified in the above reports, such as the impact of donations on political impartiality, and there have been some worrying developments, for example around civil liberties and the right to protest. 

A year’s deferral of elections to a disappearing council doesn’t fundamentally undermine our democracy, but failing to address the longer term and serious issues of democratic backsliding could prepare the way for those who will.

Dr Jason Lowther is director of INLOGOV (the Institute of Local Government Studies) at the University of Birmingham.  

References

Kippin, S., 2025. Democratic backsliding and public administration: the experience of the UK. Policy Studies, pp.1-20.

Russell, M., Renwick, A. and James, L., 2022. What is democratic backsliding, and is the UK at risk. The Constitutional Unit Briefing.

Young, A.L., 2023. Unchecked power?: How recent constitutional reforms are threatening UK democracy. Policy Press.

Picture credit: https://www.facebook.com/events/898249983102646/

Just how ‘burdensome’ is our tax system?

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Chris Game

One of the almost unavoidable consequences of being comprehensively retired and with any kind of interest in politics is that you find yourself watching more of the Government’s annual, or biannual, Budget drama than you’d ever felt necessary during your working career. There are everyone’s speculations, the experts’ attempted explanations/simplifications, plus this time the botched premature release of the whole thing by the unfortunately titled (and now former) Chairman of the Office for Budget Responsibility (OBR) some 40 minutes before Chancellor of the Exchequer Rachel Reeves even took to her feet.

Anyway, unlike, I imagine, most of you lot, I actually sat through the whole Budget speech and at least the first bit of ensuing analysis by the ‘experts’. And, having done so, I almost immediately wished I’d counted the number of ‘tax burdens’ I’d heard – rather than, say, ‘tax rates’, which was the term I feel I grew up with, or tax levels, both of which are obviously more neutral and, you might think, more appropriate for a Chancellor of the Exchequer and at least some of her own party supporters.

I’ve no way of proving this, but it’s my strong impression that for most of my life the term ‘tax burden’ is one that would be used not in a Chancellor’s budget speech, but predominantly by slightly disgruntled taxpayers themselves or by Opposition parties and politicians, as a criticism of some specific tax or tax increase that the Government or Chancellor might be contemplating or had actually just imposed.

Gratuitous piece of information: we know that the public’s attitudes towards taxation and spending do fluctuate over time – partly but not entirely in relation/response to actual levels of taxation. Indeed, there’s an actual name for the study of such fluctuations: thermostatic theory, which, when I first learnt of it, I thought was something to do with people being happier when the sun’s out.

Anyway, the two words – tax and burden – are nowadays so closely linked, in the minds apparently of both payers and imposers, that they might as well be hyphenated. Quite early on in Reeves’ speech, therefore, and having acknowledged that freezing tax thresholds would hurt working people, she assured us that her plans were fair and that “the biggest burden would fall on those with the broadest shoulders”.

Not ‘fiscal impact’, ‘tax obligation’, or even ‘tax liability’, emphasising variously the effect on government finances or the legal duty to pay taxes, but that b-word from the outset and for any public expenditure. Nowadays, it seems, any tax increase, indeed any tax at all, is not just attacked as, but presented as, burdensome – a questioning of which, as I hope you’ll be gathering, was this blog’s main prompt. 

For it strikes me as odd, wrong and regrettable in several different ways. For a start, it’s almost certainly not how most of us were first taught about and introduced to taxes and their function. My guess is that explicit links would have been made between the public services with which as young people we would have been becoming familiar and benefitting from – education, healthcare, public safety, transport, waste management, emergency services – and their providers, and how our parents contributed in various ways to their funding, even those of which they weren’t necessarily regular or direct consumers.

No doubt we learned too, maybe indirectly, about their rising costs and the tax increases required to pay for them, but, if ‘burdens’ were mentioned at all, it would have been to explain that that was part of the deal in our advanced society. And, if our teachers were particularly keen, there might be some attempts to compare our levels/burdens with those of at least other European countries.

At which point – following a weekend wondering if I should email Jason and sound him out on whether he felt it would be worth my trying to turn these frankly rather meandering thoughts into an INLOGOV blog – at 10.00 a.m. precisely on Monday morning, there arrived a ResearchGate email announcing that our colleague Catherine Durose had just co-published an article asking “How should policy actors respond to buzzwords? Three ways to deal with policy ambiguity”[1].

It’s obviously impossible to summarise a 16-page article in a single blog paragraph, but the following desperate two sentences convey at least something of Durose and her three co-authors’ concerns. By using the lens of ‘buzzwords’, they “explain how actors in real-world policymaking contexts face ambiguity, then prompt debate on how to respond” (p.4). They focus our attention on “the temporality or the cyclical nature of ideas about better policymaking” … highlighting “the ambiguity that often accompanies these cycles”, and encapsulate “what these dynamics can feel like to policy actors …” (p.5).

Which brings me to my closing paragraphs and my concern about the seemingly incessant use of the ‘tax burden’ phrase – which could easily, it seems to me, make any comparative newcomer or innocent suppose that this ‘burden’ would surely reflect the UK’s position near the top of at least the European overall tax level list.

However, as anyone who has ever spent more than a few minutes ‘researching’ this tax burden question knows well, if anything, the reverse is the case. True, UK tax as a proportion of GDP (Gross Domestic Product) is currently close to its highest since 1945, but for a single worker on an average wage, we have one of the lowest ‘tax burdens’ among both G7 (Canada, France, Germany, Italy, Japan, UK and US) and OECD countries.

Other data sets are, of course available, but if, as would seem most likely, our newcomer/innocent were thinking of personal income tax levels, they’d be pretty comprehensively wrong. In the December 2025 table of ‘Top Statutory Personal Income Tax Rates in 35 Major European Countries’ the UK’s precisely 45% personal income tax rate puts us in 16th place – yes, above halfway, but not by much, and way behind the eight 50% pluses: headed by Finland (57%), Denmark (56%), and France (55%).

So, if 45% warrants the term ‘burden’ pretty well every time it’s mentioned, I wonder what translated nouns citizens of some of these countries use?  And might it not be time for at least our Chancellor (or Chancelloress) of the Exchequer to modify the ‘burden’ references?  Oh yes, and can Durose et al. also please work on a positive buzzword/phrase to substitute for ‘tax burden’?

[1] Richardson, L., Durose, C., Cairney, P. and Boswell, J., 2025. How should policy actors respond to buzzwords? Three ways to deal with policy ambiguity. Policy Sciences, pp.1-16.

Image of chancellor: https://www.bbc.co.uk/news/articles/cewjkv8jylko

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.

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.

Win an election and implement your manifesto – that’s novel!

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Image: Emily Sinclair/BBC https://www.bbc.co.uk/news/articles/c367lry5ypxo

Chris Game

First, a reader alert. What follows is in essence an only marginally revised column written for and hopefully published in this week’s Birmingham Post, to which for many years now I’ve been a regular contributor. Thanks, at least in part, to the “many years”, I’m permitted a wide scope of subject matter, but for obvious reasons local government in some form or other is what I tend to resort to most frequently – not least around local election season.

With the Post’s Thursday publication date, this is a mixed blessing, knowing that most readers interested in these matters would very likely have learned the results of the elections before they read one’s prognostications and predictions. What follows here, then, is my third column focused on this year’s local (County/Unitary Council) elections, which were, of course, limited to just 24 of England’s 317 local authorities (plus the Isles of Scilly) and precisely none in, never mind Birmingham, the whole metropolitan West Midlands.

Faced with the alternative option of ignoring the topic altogether, I decided to focus on the four West Midlands County Councils: three with biggish, if declining, Conservative majorities – Shropshire, Worcestershire and Warwickshire – plus STAFFORDSHIRE: Labour for decades, but Conservative since 2009, and, until the May council elections, with 55 Conservative councillors out of 62, almost as Tory as they come.

However … since last July, when the county’s parliamentary constituencies all went Labour, Nigel Farage’s Reform UK Party had been energetically hoping to build in Staffordshire on what statistically had been among its most promising performances. And indeed it did: Reform UK: 49 of the 62 County Council seats, leaving the previously controlling Conservatives with 10, and Labour, Greens and Independents 1 each. The Lib Dems, along with UKIP, the Workers Party of Britain and others, failed to score.

It typified results across the country. On what nationally was an exceptionally quiet election day, Reform UK increased its nation-wide base of just two councillors (both on Hampshire’s Havant Borough Council), to a relatively massive 677 (39% of the total seats contested) and gained majority control of no fewer than 10 of the 23 councils.

One can only speculate at some of the results that a fuller involvement of, say, the 130 unitary authorities, metropolitan districts and London boroughs might have produced. I concluded that Election Day column, though, not with any numerical predictions, but with Farage’s most publicised campaign observation/pledge: “We probably need a DOGE for every single county council in England”.

Which could have sounded a touch presumptuous from the Leader of a party who had approached that Election Day holding just two of the 1,700+ seats ‘up for grabs’ – but not from Farage.

I did wonder, though, what onlookers would make of that DOGE acronym (or, in some versions, D.O.G.E. – that’s how novel it is). Indeed, even Reform candidates, who probably knew at least that it stood for the love child of President Trump and the recently very departed Elon Musk’s Department Of Government Efficiency, trod carefully.

Created, they could possibly parrot, to “modernise information technology, maximise productivity and efficiency, and cut wasteful spending”, but did they have any real idea of how the function and office might work in a UK political context? Or did they possibly assume that, like so many campaign pledges, even if, rather incredibly, a DOGE majority did emerge, it would find itself, at least for the present, on the ‘too hard just now …. we’ve only just elected our Leader’ pile?

Certainly I, while having at least some idea of what county councils having an English DOGE might entail, would definitely NOT have predicted that, within just one month of those county elections, one of England’s biggest and traditionally most Conservative counties, KENT, would be preparing to face an ‘Elon Musk-style’ DOGE audit by a team of technical experts assembled specifically to analyse its £2.5 billion-plus budget spending and assess its financial efficiency.

Since the past weekend, the ‘Elon Musk-style’ bit will possibly have been played down, but not, seemingly, the ongoing implementation. With LANCASHIRE – £1.2 billion budget – already announced as next on the list, this just could prove insightful and potentially serious stuff.

Until May 1st, Kent County Council comprised 62 Conservatives, 12 Lib Dems, 4 Greens, 0 Reform UK.  Since then, it’s been 10 Conservatives, 6 Lib Dems, 5 Greens, and 49 Reform UK. If dramatic change is to be the agenda, Kent seemed an apt and attention-guaranteeing choice. 

By any measure, and almost whatever happens next, that – in my book, anyway – is an impressive achievement. There’s been, predictably enough, ‘Establishment’ outrage – “a superficial response to the deep problems of local government” … “initiating a review of local authority spending misunderstands the circumstances facing local authorities … All councils have been caught in an iron triangle of falling funding, rising demand, and legal obligations to deliver services. In that context every local authority has had to make difficult choices to cut services …” (Institute for Government).

On the other hand, win an election and implement your party manifesto! – a demonstration that turning out and voting in local elections, even in our exceedingly non-proportional electoral system – can produce policy action.

Or, rather, especially in our exceedingly non-proportional electoral system. Two of the new Combined Authority mayors (outside the West Midlands) were elected on under 30% of the votes cast, and obviously a much smaller percentage still of the registered electorate.

This follows the recent ditching of the Supplementary Vote in favour of ‘First-Past-The-Post’, where voters pick just one candidate, and the one with the most votes wins – even if, as this time in the West of England, that percentage was under a quarter of an already very modest turnout.

To me, anyway, it’s arguably even more important in these local/Mayoral elections than in parliamentary ones – for us, the elected Mayors, and democracy generally – that voters can indicate their first AND SECOND Mayoral preferences, thereby ensuring that, however low the turnout, the finally elected winner can claim the support of at least a genuine majority of voters.  Which means electoral reform – but that’s another column/blog.

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.

Local Democracy in Crisis?

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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.