Local Government Finance in Britain: A Liberal Party View of Possible Reforms

This paper outlines a number of possible reforms of local government finance in Britain against the philosophical background of reducing the power of government in aggregate and reasserting the independence of local authorities. The reforms suggested are for a simpler central grant, a local income tax (combined with self-assessment and year-end adjustment for present PAYE payers, with eventual noncumulative PAYE and credit income tax), a land value tax at national level to replace local nondomestic rates, charges for use of local services by industry and commerce, and a new independent revenue source for parish and community councils. These proposals are proffered as a review of one aspect of the political platform for change offered by the ‘centre’ political parties in Britain.