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Local Democracy Research Centre: Local Government Finance

Local governments across the world are defined by their variety. In size, purpose, and organisation, they could hardly be more different. But one uniting factor is that they all need to get resources from somewhere. In England and Scotland, the funding systems are fundamentally not working.

For more than a decade, the LDRC and LGIU have been surveying senior local government staff and council Leaders about the state of local government finance, first in England and now also in Scotland.

Last year, we embarked on a unique international comparison project to provide an overview of local government funding systems in different countries. We gathered evidence of what works and what doesn’t to best inform solutions that can solve the crisis in the UK and disseminate ideas for other jurisdictions.

currency from many countries

Photo by Jason Leung on Unsplash

British Pound coins and bank notes.

The State of Local Government Finance in England

Each year, the Local Democracy Research Centre surveys council leaders, chief executives, cabinet members for finance and senior finance officers to find out how councils are managing and responding to a fiscal environment that has become increasingly challenging over the past decade. Explore this work.

Decorative image showing a collection of Scottish bank notes

The state of local government finance in Scotland

In 2023 we conducted our first State of local government finance survey in Scotland. We investigated the views of senior Scottish local government figures on what local government finance looks like from behind the scenes and we intend to make this an annual piece of research. Read the 2023 report here.

Detailed map of the world in all the world's currencies. CREDIT: Photo by bCracker on iStock

Funding systems for local government – international comparisons

Systems of local government finance differ significantly around the world, with varying outcomes for local autonomy. This unique research project examines how local government is funded in different countries, gathering evidence of what works and what doesn’t. Find out more and read the reports.

About the Local Democracy Research Centre

The Local Democracy Research Centre (LDRC) is where LGIU gathers the evidence and develops ideas for change and innovation in local government. We bring together experts, practitioners and academics to investigate the key challenges for local democracy around the world.

We are always solution-focused and we work closely with our extensive member base and the wider sector, meaning that our research programme always reflects local government’s priorities. More.

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