7.2 The relationship between local and central government

The relationship between local and central government in the UK is complex and ever-evolving. Local authorities operate within a framework set by Parliament, balancing autonomy with central control. Recent laws have expanded local powers, but financial dependence on central government remains a key constraint.

Central government wields significant control through funding, intervention powers, and regulatory oversight. However, devolution has reshaped this dynamic, creating new governance tiers and empowering some local areas. Local authorities play a crucial role in implementing and adapting national policies to local contexts.

Central-Local Relations Framework

Constitutional and Legal Basis

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• UK local government lacks constitutional enshrinement established through Acts of Parliament instead
• Ultra vires principle restricts local authorities to act only within powers granted by Parliament
• Local Government Act 2000 introduced general power of competence for local authorities
  • Allows action in community interests unless explicitly prohibited by law
• Localism Act 2011 expanded local government powers further
  • Granted ability to do anything an individual can do, unless statutorily prohibited
• Complex legislative web governs central-local relations
  • Includes Local Government Act 1972, Local Government Finance Act 1992, Cities and Local Government Devolution Act 2016
• European Charter of Local Self-Government ratified by UK in 1998
  • Provides framework for protecting and strengthening local autonomy
  • Not directly enforceable in UK courts

Power Distribution and Autonomy

• General power of competence expanded local authority autonomy
  • Shifted from only explicitly permitted actions to all actions not explicitly prohibited
• Localism Act 2011 aimed to decentralize power from central to local government
  • Introduced community rights (bid for assets, challenge service provision)
• European Charter principles advocate for local government consultation on central decisions affecting them
• Tension exists between localism agenda and centralized control mechanisms
  • Financial dependencies and intervention powers limit true autonomy

Central Government Control

Financial Control Mechanisms

• Central government determines majority of local government funding
  • Allocates grants forming significant portion of local authority budgets
  • Retains power to cap council tax increases limiting local revenue raising
• Financial dependency creates leverage for central government influence
  • Can incentivize certain behaviors or policy priorities through targeted funding
• Audit regime oversees local government financial management
  • National Audit Office conducts value for money studies
  • Local auditors appointed to review annual accounts

Direct Intervention and Oversight

• Power of intervention allows central control of failing local authorities
  • Outlined in Local Government Act 1999 and subsequent legislation
  • Enables takeover of specific services or entire council operations
• Secretary of State can order local inquiries into council conduct
  • Appoint commissioners to run councils in extreme failure cases (Northamptonshire, Liverpool)
• Statutory guidance issued by central departments directs local authority functions
  • Provides framework for interpreting and implementing legislation
• Inspection regimes monitor local government performance
  • Ofsted for education and children's services
  • Care Quality Commission for adult social care

Legislative and Regulatory Control

• Ministerial powers to create statutory instruments affect local actions
  • Can rapidly introduce new requirements or restrictions on councils
• Primary legislation regularly redefines local government responsibilities
  • Recent examples include Care Act 2014, Homelessness Reduction Act 2017
• Central government sets national performance indicators and targets
  • Influences local priorities and resource allocation
• Regulatory frameworks impose standards across various service areas
  • Environmental standards, planning regulations, procurement rules

Devolution's Impact on Power

Asymmetrical Devolution Effects

• Devolution created complex multi-level governance system
  • Significant powers transferred to Scotland, Wales, Northern Ireland
• Varying degrees of local authority autonomy across UK nations
  • Scotland local government has statutory basis unlike England
• City deals and combined authorities introduced new sub-national governance tier
  • Altered traditional central-local dynamic in England (Greater Manchester, West Midlands)
• Directly elected mayors for combined authorities emerged
  • Enhanced local leadership visibility and central government negotiating power
• Some devolved powers centralized at nation level
  • Potentially reduced local authority autonomy within devolved nations (Police Scotland)

Subsidiarity and Further Decentralization

• Subsidiarity principle emphasized in devolution arrangements
  • Decisions should be taken at lowest appropriate level of government
• Influenced discussions on power decentralization across UK
  • Calls for "double devolution" to empower communities below local authority level
• Varied approaches to local empowerment in devolved nations
  • Scotland's Community Empowerment Act 2015
  • Wales' Well-being of Future Generations Act 2015
• English devolution deals continue to evolve
  • Ongoing negotiations for county deals and further mayoral combined authorities

Local Government's Policy Role

National Policy Implementation

• Local authorities serve as key delivery agents for numerous national policies
  • Education, social care, housing, environmental services
• 'New localism' concept emphasizes local knowledge importance
  • Tailored approaches for effective national objective implementation
• Local government interprets and applies national legislation to local contexts
  • Often exercises significant discretion in policy implementation methods
• Partnership working crucial for successful policy implementation
  • Collaboration with other public sector bodies, voluntary and private sectors
• Statutory duty to promote area's economic, social, environmental well-being
  • Shapes approach to national policy objectives

Policy Adaptation and Feedback

• Local authorities tailor national policies to fit local circumstances
  • Adapt housing policies to local market conditions and needs
  • Customize economic development strategies to local industries and skills
• Tension between central targets and local priorities challenges implementation
  • Requires negotiation and compromise between government levels
• Local government provides feedback to central government on policy impacts
  • Highlights unintended consequences or implementation challenges
  • Informs future policy development (homelessness strategies, air quality measures)
• Innovation at local level can influence national policy direction
  • Local pilot schemes scaled up to national programs (social prescribing initiatives)