Policy theme: Finance

How should local government be funded?

Local government finances are in a period of great uncertainty. The removal of the Revenue Support Grant and localisation of business rates represent a major departure in the funding of local services and raise big questions about fair and sustainable financing for local government. Discussions about further fiscal devolution are ongoing but so far there hasn’t been much movement towards this goal. Local authorities are being asked to take a greater role in local economic life but after years of relying on central government funding and policy, what new skills might they need to cultivate to meet this challenge?

Through this programme of research, we will seek to answer the following questions.

  • What does a sustainable funding system look like for local government?
  • What should greater fiscal devolution look like?
  • Can and should councils be more entrepreneurial?
  • How can councils best support local growth?

Current projects

Previous work

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Policy Themes 2017

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