Whatever the outcome of the local government finance settlement, we have seen the start of a fundamental shift in the size of the state and from national to local taxation. The 2% social care precept signals the start of a journey that could end with full local control of business rates and council tax, but with significantly less money available to meet the current public service offer.

How can local government meet the challenge of delivering Scandinavian-style public services funded by US levels of taxation?