Words to remember:

jurisdiction is confined	invariably
develop­ment	directly
subordinate status	indirectly
participation	appointed
taxation	strengthen
responsibility	at least
measure	income
for instance	enhance
medieval	welfare
involvement	sewerage
nevertheless	miscellaneous
rural	multi­purpose
discretion	statutory
share	optional
sovereignty	equally
legislative	staff
prescribe	skills
create	diverse
despite	personnel
significant	employer
influence

Financing local government

At the present time, local government is going through a period of stress and re-appraisal. There is much debate as to its relationship with central government, while many questions are being asked as to the level of services that should be provided, or can be afforded. At present, the income of any local authority is obtained by raising revenue through the levy of a rate on all industrial, commercial and domestic property, and through funds provided by central government. A Green Paper 'Paying for Local Government' published in 1986 proposes changes in this system, including the introduction of a flat-rate community charge and the eventual phasing out of domestic rates. It also proposes a nationally set non-domestic rate figure and a new grant system to compensate local authorities for differences in the cost of providing a standard service. With some exceptions such as housing, public transport, school meals and planning applications, the majority of local government services have been free of charge, but the Green Paper suggests that the question of fees and charges should be widely reconsidered. During the 1980s the proportion of local authority funding received from the central exchequer has been considerably reduced and tight constraints have been imposed on the amount by which local councils can increase rates. Of course, policies can and do change but graduates proposing to work with a local authority must realise that they will be working within a political context where there are continuous debates about priorities, economies and resources.

Words to remember:

re-appraisal	exception
afford	free of charge
obtain	fees
fund	reduce
eventual	impose
grant system

The structure of local government

The Local Government Act of 1972 created a structure of local authorities for England and Wales which came into operation in 1974 and lasted until 31 March 1986 when the Local Government Act 1985 abolished the Greater London Council and the Metropolitan County Councils. The 1985 Act did not affect the Shire Counties and non-Metropolitan District Councils. Chart 1 indicates the different types of authorities and their inter-relationships. This is only a guide, since it is possible in some circumstances for an authority to arrange for the discharge of certain functions by another authority: for example some District Councils carry out Highways and Traffic work for County Councils.

For five years from 1 April 1986, seven Residual Bodies will be responsible for winding up the affairs of the former GLC and Metropolitan County Councils.