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Local government finance observatory

The local government finance observatory is a partnership between the LGIU and the University of Northumbria. Led by Dr Kevin Muldoon-Smith, at the University of Northumbria, this research examines in detail how local government is funded in different countries.

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With our partners at the University of Northumbria, we have undertaken this research to illuminate our understanding of local government as a system and help develop new approaches and solutions to long-standing problems. This unique system-wide perspective is useful for practitioners, policymakers, and academics seeking to understand the different ways local services are financed in democracies across the world.

If you wish to discuss the project, if you have any questions, or if you have suggestions about how the research can progress in a way that is helpful for you, please contact greg.stride@lgiu.org

In partnership with:

Sustainable local government built for the future: comparison of international systems to find the key ingredients

Examining funding systems in countries like England, Scotland, Germany, Italy, Japan, Australia and Ireland, illuminates the interplay between finance, governance, and power, offering valuable guidance for developing innovative solutions to long-standing challenges. Read this article.

Interview with lead researcher Dr Kevin Muldoon-Smith

Dr Andrew Walker sat down with Dr Kevin Muldoon-Smith to discuss the LGIU’s international comparison project, which is exploring lessons from local government funding systems around the world. Watch the interview.

Learning from local government finance across the world

This paper draws on the LGIU’s ongoing project – in partnership with the University of Northumbria – which explores local government finance systems across different countries. It makes four practical proposals that could be immediately implemented in England to begin the work of fixing a system that is not fit for purpose. Read the report.

Local government finance in Australia: Meeting the needs of the future?

This seventh report explores the complex interactions across different levels of government and stakeholders to understand how the system of local government really works in Australia. Read the report.

Multiple grants and limited local discretion: local government finance in Ireland

This sixth report examines local government finance in Ireland in its political and economic context, considering the regulatory environment, capital financing, and sources of available revenue. Read the report.

Photo shows Fishing activity at a harbour in Mallaig, Scotland

Constrained autonomy and uncertain viability in Scotland

This is the fifth report of the project. It is both a detailed assessment of local government finance in Scotland and a useful point of comparison with other systems. It covers the historical, legal, and constitutional context, as well as some of the Scottish system’s politics and peculiarities. Read the report.

Image of shopping area in Osaka, Japan

A systematic analysis of local government finance in Japan

This is the fourth report focusing in-depth on the local government system and funding mechanisms across different countries. This paper explores Japan, the evolution of its local government system and how it is financed. Read the full report.

A photograph of Piazza Gae Aulenti, Milan - modern skyscrapers, offices and place to walk

A system wide analysis of local government finance in Italy

The third report in our project, looking in-depth at funding systems in different countries, examines how things work in Italy. It explores the legal basis behind local government funding and how the system has evolved, as well as providing wider contextual detail of Italian local government. Read the full report.

A system wide perspective of local government finance in Germany

The limitations of local government finance in England: A system wide perspective

This first report from the international comparisons project is an essential assessment of how local government is financed in England, the historical context, the peculiarities of the system and the reasons it has come under sustained criticism. Read the full report.

map and money

Local government finance: a comparative study

This article is an introduction to this project and includes an overview of the funding systems in England, Germany, Italy and Japan. Read the full article.

About LGIU research

LGIU’s research brings together experts, practitioners and academics to investigate the key challenges facing local democracy worldwide. Our work is always solution-focused; we work closely with our extensive member base and the wider sector, ensuring that our research programme always reflects local government’s priorities.