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Public services and local government: the end of the principle of ‘funding following duties’

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  • Mark Sandford

Abstract

Recent attention to local government finance in England has focused on the substantial cuts in grant funding during the 2010–15 Parliament. However, the newly introduced Business Rates Retention Scheme, which links the distribution of central funding to business rate revenue raised in each local area, constitutes a historically significant disjuncture in the funding of English local authorities. Since the nineteenth century, with the exception of one short period, funding of English local government has followed statutory duties set by Parliament, a principle which underlay a variety of central control and audit regimes throughout the twentieth century. The new system breaks that link, implying a rejection of responsibility for local services by central government. This plays into demands for greater ‘autonomy’ currently emanating from local authorities, but this may not be a panacea for the stretched financial situation that many of them are experiencing at present.

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  • Mark Sandford, 2016. "Public services and local government: the end of the principle of ‘funding following duties’," Local Government Studies, Taylor & Francis Journals, vol. 42(4), pages 637-656, July.
    • Handle: RePEc:taf:flgsxx:v:42:y:2016:i:4:p:637-656
    DOI: 10.1080/03003930.2016.1171753
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    Cited by:

    1. Federico Mor & Mark Sandford, 2017. "Growing pains: Property taxation and revenue incentives in English local government," Local Economy, London South Bank University, vol. 32(5), pages 399-419, August.

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