ABSTRACT
This chapter does not deny a role for central government. It accepts the need for central government to set the framework within which local authorities can carry on the local government of education. However, it is critical that there should be a significant area of governmental discretion at local level with the elected authority and the independent financial resources to exercise it. The government of education is the government of a large-scale complex community service. Under the Education Act 1944 both the secretary of state and the local education authorities were given significant roles. There is a need to review the range of statutory duties and conditions placed upon local authorities to establish whether they overdetermine local choice. The chapter argues that local government finance should be based on the retention of domestic rate; the transfer of non-domestic rate to central government; the reduction of grant to amount required for equalization purposes; and the introduction of a local income tax.
