Local government finance

The analysis of the expenditure decisions of English local authorities has assumed great importance as central government has sought to exercise increasing control over the activities of local government.

The national non-domestic rate was introduced in 1990 to replace a system of locally varying business rates which had lasted for almost four centuries. Five years after the. 1990 reforms, this report evaluates the operation of the present system and discusses various options for reform.

This report considers the issues involved in using sales taxes as a possible source of local government revenues in the UK.

In this commentary we describe in detail reforms taking place to local authority finances and analyse their effects on local authorities and local tax payers.

The increasing relative size of the local government sector over the last thirty five years is reasonably well known.