Local government in England#Aggregate External Finance

{{Further|Parish council (England)}}

File:Parishes in England map, 2021.svg

Parish councils form the lowest tier of local government and govern civil parishes. They may also be called a 'community council', 'neighbourhood council', 'village council', 'town council' or (if the parish holds city status) 'city council', but these names are stylistic and do not change their responsibilities.{{Cite legislation UK|type=act|year=1972|chapter=70|act=Local Government Act 1972}}{{Cite legislation UK|type=act|year=1972|chapter=70|act=Local Government Act 1972|section=245}} As of December 2021 there are 10,475 parishes in England, but they do not cover the whole of the country as many urban parishes were abolished in 1974.{{Cite web |date=1 April 2022 |title=Parishes (December 2021) EW BFE |url=https://geoportal.statistics.gov.uk/datasets/ons::parishes-december-2021-ew-bfe |access-date=8 May 2022 |website=Office for National Statistics}}

The only specific statutory function of parish councils, which they must do, is establishing allotments. However, there are a number of other functions given by powers in the relevant legislation, which they can do, such as providing litter bins and building bus shelters.{{Cite web |last=Association of Council Secretaries and Solicitors |title=Powers and Functions of Parish Councils |url=http://townforum.org.uk/servicesstructure/parishcouncilguide2007.pdf |access-date=8 May 2022 |website=townforum.org.uk}} Their statutory functions are few, but they may provide other services with the agreement of the relevant local authorities,{{Cite web |title=Local government structure and elections |url=https://www.gov.uk/guidance/local-government-structure-and-elections |access-date=7 May 2022 |website=UK Government}} and under the Localism Act 2011 eligible parish councils can be granted a "general power of competence" (GPC) which allows them within certain limits the freedom to do anything an individual can do provided it is not prohibited by other legislation, as opposed to being limited to the powers explicitly granted to them by law.{{cite web |title=The General Power of Competence |url=https://www.local.gov.uk/sites/default/files/documents/general-power-competence--0ac.pdf |url-status=live |archive-url=https://web.archive.org/web/20240918160836/https://www.local.gov.uk/sites/default/files/documents/general-power-competence--0ac.pdf |archive-date=2024-09-18 |access-date=2018-11-10 |website=Local Government Association |publisher=Local Government Association}} To be eligible for this a parish council must meet certain conditions of quality.{{Cite legislation UK|type=si|year=2012|number=965|si=The Parish Councils (General Power of Competence) (Prescribed Conditions) Order 2012}}

Civil parishes developed in the nineteenth century and were based on the Church of England's parishes, which until then had both ecclesiastical and local government functions; parish councils were created by the Local Government Act 1894 (56 & 57 Vict. c. 73).{{Cite EB1911|wstitle=Parish|volume=20|last=|first=|author-link=|pages=823-825|short=1}} The ecclesiastical parishes continue to exist, but neither they nor their parochial church councils have any local government role.{{Cite web |title=bridekirkparish.org.uk |url=https://www.bridekirkparish.org.uk/Contents/ContentItems/4my2tat4wnmsfxtkm9vbewvhw1 |access-date=2023-06-24 |website=www.bridekirkparish.org.uk}}

{{multiple image

| image1 = English administrative divisions map 2023.svg

| image2 = English districts map 2023.svg

| footer = The local authorities of England (in two-tier areas, the county council is pictured first while the district councils are pictured second), as of April 2023.

}}

There are 317 local authorities (not counting parish councils) covering the whole of England. There are five main types of local authorities: London borough councils, two-tier county and district councils, metropolitan district councils and unitary authorities. Some local authorities have borough, city or royal borough status, but this is purely stylistic.{{Cite web |title=List of councils in England by type |url=https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1026384/List_of_councils_in_England_2021.pdf |url-status=live |archive-url=https://web.archive.org/web/20220218194659/https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1026384/List_of_councils_in_England_2021.pdf |archive-date=2022-02-18 |access-date=7 May 2022 |website=UK Government}}

All local authorities are made up of councillors, who represent geographical wards.{{Cite web |title=English Councils 2021 (Total 331) |url=http://opencouncildata.co.uk/councils.php?model=E&y=0 |access-date=7 May 2022 |website=Open Council Data UK}} There are 7,026 wards as of December 2021.{{Cite web |date=1 March 2022 |title=Wards (December 2021) GB BFE |url=https://geoportal.statistics.gov.uk/datasets/ons::wards-december-2021-gb-bfe |access-date=8 April 2022 |website=Office for National Statistics}} Local authorities run on four year cycles and councillors may be elected all at once, by halves or by thirds; although the Electoral Commission has recommended that all authorities use whole council elections every 4 years.{{Cite web |year=2004 |title=The cycle of local government elections in England Report and recommendations |url=https://democracy.peterborough.gov.uk/documents/s47107/13a.%20Appendix%20A%20Electoral%20Commission%20The%20cycle%20of%20local%20government%20elections%20in%20England.pdf |url-status=live |archive-url=https://web.archive.org/web/20240806061609/https://democracy.peterborough.gov.uk/documents/s47107/13a.%20Appendix%20A%20Electoral%20Commission%20The%20cycle%20of%20local%20government%20elections%20in%20England.pdf |archive-date=2024-08-06 |archive-format=PDF |access-date=2024-09-20 |website=Peterborough City Council |publisher=The Electoral Commission}}

Local authorities have a choice of executive arrangements under the Local Government Act 2000: mayor and cabinet executive, leader and cabinet executive, a committee system or bespoke arrangements approved by the Secretary of State. As of April 2023, just 15 local authorities have directly-elected mayors.{{Cite web |last=Sandford |first=Mark |date=21 May 2021 |title=Directly-elected mayors |url=https://researchbriefings.files.parliament.uk/documents/SN05000/SN05000.pdf |access-date=7 May 2022 |website=House of Commons Library}} Some functions are just the responsibility of the executive of a local authority,{{Cite legislation UK|type=act|year=2000|chapter=22|act=Local Government Act 2000|section=9D}} but local authorities must also have at least one overview and scrutiny committee to hold the executive to account.{{Cite legislation UK|type=act|year=2000|chapter=22|act=Local Government Act 2000|section=9F}}

The London Government Act 1963 established 32 London borough councils.{{Cite legislation UK|type=act|year=1963|chapter=33|act=London Government Act 1963|section=1}} It also established the Greater London Council, covering the whole of Greater London,{{Cite legislation UK|type=act|year=1963|chapter=33|act=London Government Act 1963|section=2}} but this was later abolished by the Local Government Act 1985.{{Cite legislation UK|type=act|year=1985|chapter=51|act=Local Government Act 1985|section=1}} Greater London also includes the sui generis City of London Corporation. The other sui generis local authorities are the Council of the Isles of Scilly, Middle Temple and Inner Temple.{{Cite legislation UK|type=si|year=1998|number=494|si=The Health and Safety (Enforcing Authority) Regulations 1998|regulation=2}}

Outside Greater London and the Isles of Scilly, the Local Government Act 1972 divided England into metropolitan and non-metropolitan counties, which would have one county council and multiple district councils each.{{Cite legislation UK|type=act|year=1972|chapter=70|act=Local Government Act 1972|section=1(1)-(4)}} That meant that each area would be covered by two tiers of local authorities - both a county council and a district council, which would share local authority functions. In May 2022, 21 non-metropolitan county councils and 164 non-metropolitan district councils remain. These are better known as simply county councils and district councils. The Local Government Act 1985 also abolished metropolitan county councils, but there are still 36 metropolitan district councils as of May 2022.

There are also (as of April 2023) 62 unitary authorities. These carry out the functions of both county and district councils and have replaced two-tier local government in some areas.{{Cite web |last=Sandford |first=Mark |date=22 July 2021 |title=Unitary local government |url=https://researchbriefings.files.parliament.uk/documents/CBP-9056/CBP-9056.pdf |access-date=7 May 2022 |website=House of Commons Library}} The creation of these first became possible under the Local Government Act 1992,{{Cite legislation UK|type=act|year=1992|chapter=19|act=Local Government Act 1992|section=17}} but now takes place under the Local Government and Public Involvement in Health Act 2007.{{Cite legislation UK|type=act|year=2007|chapter=28|act=Local Government and Public Involvement in Health Act 2007|section=7}}

In the 2023/24 financial year, 33% of budgeted service expenditure across local government as a whole is set to be on education, 19% on adult social care, 13% on police, 11% on children's social care and 24% on all other services.{{Cite web |date=22 June 2023 |title=Local authority revenue expenditure and financing: 2023-24 budget, England |url=https://www.gov.uk/government/statistics/local-authority-revenue-expenditure-and-financing-2023-24-budget-england/local-authority-revenue-expenditure-and-financing-2023-24-budget-england |access-date=20 October 2023 |website=UK Government |language=en}}

Notably, Cornwall Council has been subject to a devolution deal, which are usually reserved to combined authorities for additional functions and funding.{{Cite web |title=Devolution deals |url=https://local.gov.uk/our-support/safer-and-more-sustainable-communities/devolution-hub/devolution-deals |access-date=11 May 2022 |website=Local Government Association}} And, like some combined authorities and parish councils, local authorities do have a general power of competence.{{Cite web |last=Sandford |first=Mark |date=20 September 2021 |title=The General Power of Competence |url=https://researchbriefings.files.parliament.uk/documents/SN05687/SN05687.pdf |access-date=8 May 2022 |website=House of Commons Library}} Separate to combined authorities, two or more local authorities can also work together through joint boards (for legally-required services: fire, public transport and waste disposal), joint committees (voluntarily) or through contracting out and agency arrangements.{{Cite book |last1=Wilson |first1=David |title=Local Government in the United Kingdom |last2=Game |first2=Chris |publisher=Palgrave Macmillan |year=2011 |isbn=9780230246393 |edition=5th |pages=84}}

File:Combined authorities and the Greater London Authority in England map, 2021.svg

{{Further|Greater London Authority}}

The Greater London Authority Act 1999 established a Mayor of London and 25-member London Assembly.{{Cite legislation UK|type=act|year=1999|chapter=29|act=Greater London Authority Act 1999|section=2}} The first mayoral and assembly elections took place in 2000.{{Cite web |last=Sandford |first=Mark |date=3 March 2022 |title=The Greater London Authority |url=https://researchbriefings.files.parliament.uk/documents/SN05817/SN05817.pdf |access-date=23 July 2022 |website=House of Commons Library}} The former Leader of the Greater London Council, Ken Livingstone, served as the inaugural Mayor, until he was defeated by future Prime Minister Boris Johnson in 2008. The incumbent, Sadiq Khan, was first elected in 2016.

The Mayor's functions include chairing Transport for London,{{Cite web |last= |first= |title=Board Members |url=https://www.tfl.gov.uk/corporate/about-tfl/how-we-work/corporate-governance/board-members |url-status=live |archive-url=https://web.archive.org/web/20190207020050/https://tfl.gov.uk/corporate/about-tfl/how-we-work/corporate-governance/board-members |archive-date=2019-02-07 |access-date=23 July 2022 |website=Transport for London |language=en}} holding the Commissioner of the Metropolitan Police and London Fire Commissioner to account{{Cite legislation UK|type=act|year=1972|chapter=70|act=Local Government Act 1972|section=3}}; {{Cite legislation UK|type=act|year=1999|chapter=29|act=Greater London Authority Act 1999|section=327A}} and keeping strategies up to date, including the London Plan.{{Cite legislation UK|type=act|year=1999|chapter=29|act=Greater London Authority Act 1999}}, s 41(1)-(2). Meanwhile, it is the Assembly's role to regularly hold the Mayor and their key advisers to account and it can also amend the budget or a strategy by a two-thirds majority, though this has not ever happened as of March 2022.

File:Combined Authorities (stages 2025).png

{{Further|Combined authorities and combined county authorities}}

Combined authorities can be created at the request of two or more local authorities.{{Cite web |last=Sandford |first=Mark |date=17 December 2019 |title=Combined authorities |url=https://researchbriefings.files.parliament.uk/documents/SN06649/SN06649.pdf |access-date=7 May 2022 |website=House of Commons Library}} Combined authorities do not replace the local authorities in question, but can receive separate functions and funding. As of May 2022, there are 10 combined authorities covering some of England. The Secretary of State was first granted the power to create combined authorities by the Local Democracy, Economic Development and Construction Act 2009.{{Cite legislation UK|type=act|year=2016|chapter=1|act=Cities and Local Government Devolution Act 2016|section=103}}

The Cities and Local Government Devolution Act 2016 gave the Secretary of State the power to provide for a directly-elected combined authority mayor.{{Cite legislation UK|type=act|year=2016|chapter=1|act=Cities and Local Government Devolution Act 2016}}, s 2. And, as of May 2022, nine out of the 10 combined authorities have mayors, including Andy Burnham in Greater Manchester and Andy Street in the West Midlands. In the 2024 local elections, new Combined Authorities were elected; they were the new York and North Yorkshire Combined Authority, North East Mayoral Combined Authority, East Midlands Combined County Authority. They are all controlled by the Labour Party as of 2024 except for Tees Valley. {{Cite web |last=Henderson |first=Duncan |last2=Paun |first2=Akash |last3=Allen |first3=Briony |last4=Mitchell |first4=Millie |date=2024-06-21 |orig-date=2023-03-06 |title=English devolution |url=https://www.instituteforgovernment.org.uk/explainer/english-devolution |url-status=live |archive-url=https://web.archive.org/web/20240224083133/https://www.instituteforgovernment.org.uk/explainer/english-devolution |archive-date=2024-02-24 |access-date=2024-09-20 |website=Institute for Government |language=en}}

Each combined authority's executive consists of a representative from each of its constituent local authorities, plus (if applicable) the mayor. Functions can be devolved directly to the mayor, to the combined authority as a whole, or have a different decision-making requirement. The budget and functions of each combined authority can be vastly different, but possible functions include responsibility for the relevant police force and/or fire brigade, bus franchising and spatial strategy.{{Cite web |last=Sandford |first=Mark |date=10 February 2022 |title=Devolution to local government in England |url=https://researchbriefings.files.parliament.uk/documents/SN07029/SN07029.pdf |access-date=7 May 2022 |website=House of Commons Library}}

In England, local authorities have three main sources of funding: UK Government grants, council tax and business rates.{{Cite web |last=Atkins |first=Graham |last2=Hoddinott |first2=Stuart |date=10 March 2020 |title=Local government funding in England |url=https://www.instituteforgovernment.org.uk/explainer/local-government-funding-england |url-status=live |archive-url=https://web.archive.org/web/20230429001130/https://www.instituteforgovernment.org.uk/explainer/local-government-funding-england |archive-date=2023-04-29 |access-date=20 October 2023 |website=Institute for Government |language=en}} In the financial year 2019/20, local authorities received 22% of their funding from grants, 52% from council tax and 27% from retained business rates. In the financial year 2023/24, 51% of revenue expenditure is expected to come from UK Government grants, 31% from council tax and 15% from retained business rates.

Local government can also receive some money from fees and charges for the use of services, returns and interest from investments, commercial income, fixed penalty notices and capital receipts.{{Cite web |date=29 December 2019 |title=Councillor workbook – Local government finance |url=https://www.local.gov.uk/publications/councillor-workbook-local-government-finance |url-status=live |archive-url=https://web.archive.org/web/20221128112751/https://www.local.gov.uk/publications/councillor-workbook-local-government-finance |archive-date=2022-11-28 |access-date=20 October 2023 |website=Local Government Association |language=en}} The Information Commissioner's Office has ruled that there is a public interest in disclosing information about local government investments which will generally outweigh any concerns about whether disclosure could affect an investment's performance or be protected by confidentiality requirements.{{Cite web |last=Thomas |first=Richard |date=2007-02-01 |title=Freedom of Information Act 2000 (Section 50) |url=https://ico.org.uk/media/action-weve-taken/decision-notices/2007/391832/DECISION_NOTICE_FS50086121.pdf |url-status=live |archive-url=https://web.archive.org/web/20240815135733/https://ico.org.uk/media/action-weve-taken/decision-notices/2007/391832/DECISION_NOTICE_FS50086121.pdf |archive-date=2024-08-15 |access-date=2024-09-20 |website=Information Commissioner's Office}}

Local authorities cannot borrow money to finance day-to-day spending and so must rely on yearly income or reserves for this type of expenditure, although they can borrow to fund capital expenditure.

Local government in England as a whole has limited revenue-raising powers compared to other G7 countries.

In the 20th century, local authorities found that the costs of providing services exceeded the revenues raised from local taxes and so grants from the UK Government (specifically the Treasury) gradually increased. However, UK Government grants were cut by 40% in real terms between the financial years 2009/10 and 2019/20, although grant income did grow due to the COVID-19 pandemic.

Local government receives two types of grants: the Revenue Support Grant, which can be spent on any service according to the wishes of the local government body in question, and specific grants, which are usually 'ring fenced' to specifically defined service areas.

{{main|Council Tax}}

Council tax was introduced in 1993 to replace the 'poll tax'. It is a domestic property tax, based on eight bands (A to H) depending on the value of the property on 1 April 1991. Various discounts are set out in law and exist at the discretion of billing authorities.

On a yearly basis, local government bodies review and consider whether to increase or decrease the level of council tax to fund their spending plans. The level at which a local authority can increase council tax each year without holding a local referendum is regulated by the Localism Act 2011.{{Cite legislation UK|type=act|year=2011|chapter=20|act=Localism Act 2011|section=72}} In every area, one local authority acts as the billing authority (the district council in two-tier areas), which prepares and collects council tax bills. Other parts of local government (like county councils in two-tier areas, police and crime commissioners, fire authorities, parish councils and combined authorities) act as precepting authorities, which notify the relevant billing authority of their decision on council tax and later receive this money from the billing authority.

Between financial years 2009/10 and 2021/22, council tax rates increased by 30% in real terms, in light of reduced grants from the UK Government.

{{main|Business rates in England}}

Business rates is a tax on business premises. It is based on the rateable value of the premises (set by the Valuation Office Agency) and a business rate multiplier. It is set and collected by billing authorities.

Reforms in 2013 now mean that local authorities keep 50% of business rate revenues raised locally. The UK Government then distributes the remaining 50% of business rate revenues according to its own judgement. It was initially planned to increase the proportion of business rates that local authorities retain to 100%, but this was indefinitely delayed in 2021.

In 2022, the Public Administration and Constitutional Affairs Committee said that it had "significant concerns about the current governance arrangements for England":{{Cite web |last=Public Administration and Constitutional Affairs Committee |title=Governing England |url=https://publications.parliament.uk/pa/cm5803/cmselect/cmpubadm/463/report.html |access-date=20 October 2023 |website=UK Parliament}}

If the people within government are unsure at times where powers and responsibility, and hence accountability, rest, this lack of clarity is magnified for individuals who have little knowledge or experience of the structures. This has the potential to leave individuals less likely to be able to access what they need from government, leaving them often unable to know who is responsible, and as a result are not properly able to hold their democratic representatives to account.

The Committee also said that "[t]he evidence is clear both practically and democratically that the overly centralised arrangements of government in England are problematic" and that reform was also needed of funding structures.

As of March 2025, the various combined authorities, county, district, and sui generis councils formed an administrative hierarchy as shown in the table below. Unitary authorities are legally either district councils which also perform county functions or county councils which also perform district functions; they therefore straddle the county and district columns. Metropolitan districts and London boroughs are also shown straddling the county and district columns. In much of the country there is also a lower tier of civil parishes.{{cite web |title=Election Maps |url=https://www.ordnancesurvey.co.uk/election-maps/gb/ |publisher=Ordnance Survey |access-date=6 May 2024}} This administrative hierarchy differs from the ceremonial hierarchy.

{{sticky header}}

• List of local governments in the United Kingdom
• Political make-up of local councils in the United Kingdom
• Local government in Northern Ireland
• Local government in Scotland
• Local government in Wales

{{reflist}}{{Administrative geography of the United Kingdom}}

{{Local government in Europe}}

{{DEFAULTSORT:Local Government in England}}

England

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