Title

FINANCE

Give districts full freedoms on precepts

Why not remove precepts entirely for all local authorities and leave increases to be determined at the (local) ballot box, says The MJ's new Money Matters' columnist Tracy Bingham.

The localist in me was thrilled to hear about the District Council Network's calls for maximum financial freedoms for councils.  They've been lobbying hard for greater devolution of powers and flexibilities so that districts are free to attract and use income in ways that meet the local challenge and remain accountable to the local taxpayer.  Looking at the proposed council tax referendum principles for another year, I can see why!

The proposals are set to limit districts to the higher of 2% or £5.  Unitary authorities and county councils can both generate an additional 3% for social care and Police and Crime Commissioners can increase their precept by up to £15. 

What a 2% principle doesn't tell you though is what it actually means – which is an average increase of just £3.89 for districts.  For many, this will mean the £5 cap (which on average is only 2.7% by the way) is taken up, particularly by those councils looking to close the gap on a historically low precept.  But, common sense says there simply comes a point when a fiver doesn't buy you much, regardless of where or how you're spending it!

Shouldn't we have a level playing field?  Shouldn't districts be able to include a care precept?  Can't all councils have a far reaching cap?  Districts too play a key role in looking after people and in carrying out enforcement, providing welfare and benefits, leisure facilities and housing, reducing pressure on social care and the NHS through (unfunded) preventative work and enforcing rules within own communities - a role very much highlighted throughout the pandemic.  It's only fair districts are provided with the opportunity to increase their precepts in a meaningful way when that's needed – so why not remove them entirely for all local authorities and leave increases to be determined at the (local) ballot box?

Tracy Bingham is head of finance at North West Leicestershire DC

FINANCE

A landmark judgement for Sandwell's children and families

By Emma Taylor | 18 December 2025

Sandwell’s ‘Good’ rating by Ofsted is the result of sustained leadership, stronger partnerships and effective governance between the children’s trust and the...

FINANCE

Playing the long game

By Ann McGauran | 18 December 2025

Cornwall’s approach to managing the cost of supporting working age adults has already started to reap dividends, and as Ann McGauran finds out, this is a lon...

FINANCE

Pillars that unlock purpose, unblock barriers

By Andy Begley | 18 December 2025

Andy Begley lays out the four pillars he believes are essential to accelerating transformation – showing why real progress depends on borrowing the best idea...

FINANCE

Spinning a golden SEND thread

By Ann McGauran | 18 December 2025

ADCS president Rachael Wardell talks to Ann McGauran about the need for government to listen to the perspectives of England’s children’s services directors ...