ABSTRACT
This chapter argues that why the present level of central control over local-government finance is both unnecessary and unhelpful. Different options for financing local government are then explored and comparatively evaluated, and some key principles set out. The chapter analyses the proposals of the Conservative government on local government. The system of local government finance should express and support the purpose of local government that we seek, which requires a wide-ranging scope for local choice built on the foundations of local democracy and local accountability. The chapter discusses the two remaining options, local taxes on residential and non-residential properties, respectively, feature prominently in the government's current plans for radical change in local finance. The analysis and arguments set out in the chapter remain relevant key aspects in any consideration of a move to a system of local-government finance that would enhance local government autonomy and accountability.
