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

Active ageing is key to healthier communities

By Phil Donnay | 01 October 2026

GLL’s Phil Donnay explains why older people are central to Better’s mission.

FINANCE

Missing link in council capacity

By Steve Wilson | 01 October 2026

Agency staff should be seen as more than a necessary evil, writes Steve Wilson.

FINANCE

Solving the housing crisis is key to social and environmental justice in London

By Zoë Garbett | 30 September 2026

With the Green Party conference set to take place on 2-4 October in Brighton, Zoë Garbett says housing pressures are intensifying across London, requiring st...

FINANCE

Downgrading councils who use illegal children's homes holds sector to 'unattainable standard'

By Ann McGauran | 29 September 2026

Ofsted proposals to downgrade councils that use unregistered placements would hold local authorities (LAs) to an ‘unattainable standard’, children’s care chi...

-->