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 system for success

By Heather Jameson | 23 December 2025

Luton Council’s bold 2040 vision prioritises jobs, homes and safety. Heather Jameson talks to chief executive Mark Fowler about taking a systems-based approa...

FINANCE

Scrooge Says: Bah Humbug to Local Elections

By Colin Copus | 22 December 2025

Labour said nothing about LGR in its manifesto and, as well as moving to create 'huge' new unitaries, ministers have made councils responsible for sticking t...

FINANCE

Giving the public a seat at the table on AI decision

By Kathy Peach | 19 December 2025

Nesta’s research proves that when people are given more context about specific AI tools and their use cases, the public’s fears about AI can transform into m...

FINANCE

People, purpose – and power

By Ellen Care | 19 December 2025

Five pioneering councils have teamed up with Collaborate CIC to share insight, solve problems collectively and build their influence – all with a common goal...