Local Government

Introduction

Local government in the United Kingdom is the system of elected authorities responsible for the administration of public services at the local level. It is a vital part of the UK constitution, providing democratic accountability for services such as education, housing, planning, waste management, and social care. The structure, functions, and financing of local government have been subject to repeated reform, and the system varies significantly between England, Scotland, Wales, and Northern Ireland. The relationship between central and local government is governed by statute, and local authorities exercise only those powers that Parliament has conferred upon them. The development of combined authorities and metro mayors has created a new tier of sub-national governance in England.

Types of Councils

The structure of local government in England is complex and varies across the country. Unitary authorities are single-tier councils responsible for all local government functions in their area. Most of England outside London and the metropolitan counties is covered by a two-tier system: county councils provide strategic services (education, transport, social care, libraries) and district councils provide local services (housing, planning, waste collection, leisure). The metropolitan boroughs (in six metropolitan counties created in 1974) are unitary authorities with most local government functions, while the Greater London Authority and the 32 London boroughs provide a unique two-tier structure for the capital. Parish councils (also called town councils) provide a third tier of very local government. The pattern of councils has been repeatedly reorganised since the Local Government Act 1972, with a trend toward unitary structures. The Boundary Commission for England reviews council boundaries and structures. Scotland and Wales have single-tier unitary authorities created by local government reorganisations in the 1990s. Northern Ireland has 11 district councils with relatively limited functions.

Combined Authorities and Metro Mayors

The Cities and Local Government Devolution Act 2016 established a framework for combined authorities—statutory bodies created by bringing together two or more local authorities to exercise devolved powers and functions. Combined authorities are governed by a mayor (a directly elected metro mayor) or by a board of council leaders. The Greater Manchester Combined Authority (established 2011) was the first and remains the most developed, with the first directly elected metro mayor (2017). Mayors now exist across many city regions, including the West Midlands, Liverpool City Region, South Yorkshire, West Yorkshire, Tees Valley, and Cambridgeshire and Peterborough. The Levelling Up and Regeneration Act 2023 expanded the framework, introducing county combined authorities and providing for deeper devolution deals. Metro mayors typically have powers over transport, housing and planning, skills and employment, economic development, and police and crime (in some areas). The devolution of powers to combined authorities represents a significant constitutional development, creating a new tier of governance between central government and local authorities.

Local Government Financing

Local government is financed through a combination of central government grants, council tax, and business rates. The local government finance settlement determines the allocation of central government funding, which is the largest source of local authority income. Council tax is a property-based tax set by local authorities, with bands based on property values assessed in 1991 (in England). The Local Government Finance Act 1992 established the current system. Business rates are collected by central government and redistributed to local authorities through a formula. The Business Rates Retention Scheme (introduced in 2013) allows local authorities to retain a proportion of business rate growth, providing an incentive for economic development. The Fair Funding Review (long promised but not yet implemented) would reform the formula for distributing central government funding. Local authorities have limited borrowing powers, regulated by the Prudential Code. The financial pressures on local government have increased significantly since 2010, with real-terms reductions in central funding leading to service cuts and some councils issuing Section 114 notices (effectively declaring bankruptcy).

Local Government Acts

The legal framework for local government is established by a series of Local Government Acts. The Local Government Act 1972 created the current structure of counties and districts in England and Wales. The Local Government Act 1985 abolished the Greater London Council and the six metropolitan county councils. The Local Government Act 1992 established the Local Government Commission and provided for the creation of unitary authorities. The Local Government Act 2000 introduced the requirement for councils to adopt one of three models of executive governance: a directly elected mayor, a cabinet with a leader, or a mayor and council manager. The Localism Act 2011 granted a general power of competence to local authorities, enabling them to do anything an individual could do unless specifically prohibited. The Act also introduced community rights (the right to buy, right to challenge, and right to bid) and reformed the planning system. The Local Government Acts 2012 and 2013 made further changes to local government finance. The Local Government (Wales) Act 2015 reformed local government in Wales.

Central-Local Relations

The relationship between central and local government is characterised by tension between local democratic autonomy and central control. Local authorities are creatures of statute: they can only exercise powers that Parliament has conferred, and central government sets the legal framework within which they operate. Central government exercises significant control through financial levers (funding allocations, capping powers, and ring-fencing of grants), statutory duties imposed on councils, and inspection and performance monitoring (through bodies such as the Local Government and Social Care Ombudsman and the Audit Commission). The principle of subsidiarity—that decisions should be taken at the most local level consistent with effective delivery—has been endorsed by successive governments but has not been given legal force. The Devolution White Paper (2022) proposed a new framework for central-local relations, including a trailblazer devolution programme and a Levelling Up Partnership approach.

Local Government in Scotland, Wales, and Northern Ireland

Local government in the devolved nations follows different structures. Scotland has 32 unitary councils established by the Local Government etc (Scotland) Act 1994, covering all local government functions. The Local Government in Scotland Act 2003 introduced a power to advance well-being and the Community Planning framework. The Scottish Government controls local government policy and funding. Wales has 22 unitary authorities established by the Local Government (Wales) Act 1994. The Welsh Government has responsibility for local government policy, including the Local Government (Wales) Act 2015 and the Local Government and Elections (Wales) Act 2021, which introduced a general power of competence, reformed electoral arrangements, and strengthened performance and governance. Northern Ireland has 11 district councils established by the Local Government (Boundaries) Act (Northern Ireland) 2008 and the Local Government Act (Northern Ireland) 2014. Councils in Northern Ireland have more limited functions than their equivalents in Great Britain, with education, health, and housing administered directly by the Northern Ireland Executive.

Conclusion

Local government is a vital component of the UK constitution, providing democratic accountability for local services and contributing to the pluralist structure of the state. The system has been subject to repeated reform, with trends toward unitary structures, directly elected mayors, and combined authorities. The general power of competence under the Localism Act 2011 has provided greater flexibility, but financial pressures have significantly constrained local authorities’ capacity to deliver services. The development of combined authorities and metro mayors has created a new tier of sub-national governance, with devolved powers and functions that blur the traditional distinction between central and local government. The long-term trajectory of local government will depend on the resolution of fundamental questions about funding, structure, and the balance between central control and local autonomy.