Future Local Lab
Local Government Explained
Local Elections England: 2026Learning from local government finance across the world: Proposals for improving the financial resilience of local government in England
Kevin Muldoon-Smith, Andrew Walker and Greg Stride
We know local government finance in England is not fit for purpose, but how can we fix it? The proposals in this paper draw on our in-depth research into local government systems in Germany, Italy and Japan – part of an ongoing international comparisons project.
Over the last ten years, the evidence that there has been a major sustained failure to properly fund local services in England has become undeniable. We know local government finance in England is broken, the next question is: how can we fix it?
To answer this, the LGIU’s Local Democracy Research Centre has worked together with a team of experts, led by Professor Kevin Muldoon-Smith at the University of Northumbria to see how other countries have managed it.
The proposals in this paper are all important, practical steps that governments in countries like Japan, Germany and Italy have taken to make local government funding more sustainable and resilient. Other places have tackled sustained failures in local government finance with the imagination and seriousness that the delivery of essential services, and the health of democracy at the local level, warrant. It’s time we did the same.
Further reading:
LGIU@40: For the Future of Local Government
Funding systems for local government – international comparisons
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