It's no surprise that since the Government published its English Devolution White Paper, much of the debate has focused on local government reorganisation and the abolition of district and county councils. But as local government minister Jim McMahon told Parliament at the time, ‘devolution has to work from the top to the bottom and the right powers have to be in the right places'. But he didn't stop there. ‘At a neighbourhood level, we see town and parish councils playing a critical role in devolution.'
He's completely right, of course. As the tier of government closest to communities, parish and town councils already cover 92% of England and play a unique and indispensable role in the social fabric of our villages, towns and cities. More than simply administrative entities, these grassroots, hyperlocal councils are democratic and accountable bodies embedded in the everyday realities of residents, offering tailored services, local leadership, and a direct line between governance and the governed. In recent years, their responsibilities and contributions have grown considerably, especially as public service delivery continues to evolve at the local level and onward devolution has seen many councils take on services from financially challenged principal local authorities. These include youth services, libraries, parks and green spaces, markets, public toilets, grants to community organisations, and so much more.
This is why the Government's devolution agenda must help, rather than hinder those 100,000 parish and town councillors who get involved to improve their community. Local leaders with skin in the game who know their places best, to use the phrase coined by Jim's boss, deputy prime minister Angela Rayner.
The nation's most local level of government should be empowered – not hindered – to serve their communities, meet growing responsibilities, reflect local priorities and be the perfect partners to new unitary authorities.
And the White Paper has the potential to do just that by resetting relations between the tiers of local government.
Reorganisation is an opportunity to do more. New powers to hold remote meetings. Strengthening the standards regime. Improvements to local audit. Support and development for councillors. Workforce development. Fixing local government finance.
Hear hear, given these are all issues the National Association of Local Councils (NALC) has been one of the loudest voices calling for.
Yet it is the last of these objectives which requires the Government to build on the approach taken by previous governments. Especially concerning parish and town council precepts. Any change of course to effectively cap some or all parish and town councils would seriously threaten their effectiveness and undermine the broader agenda of devolution and community empowerment.
Unlike principal local authorities, parish and town councils receive no central government funding. Or share of business rates. Or access to central government grant schemes. Instead, their services are funded almost exclusively through their small share of council tax. Which is £859m this year, just 2% of overall council tax.
This funding model makes them uniquely accountable; they raise money directly from the people they serve and are therefore answerable to them for every pound spent. Residents have a clear, tangible stake in their local council's decision-making, which helps ensure spending is transparent, justified, and rooted in local needs. Simples. And just £1.77 a week on average for a Band D council taxpayer.
Since the introduction of council tax referendums in 2011, successive governments – regardless of political affiliation – have wisely chosen to exclude parish and town councils from referendum requirements on council tax increases. This decision has allowed them to maintain the agility and autonomy necessary to meet evolving local priorities without being encumbered by unnecessary bureaucratic hurdles. NALC has long advocated for this exemption, working closely with the Government to highlight the damaging implications of extending referendums or capping measures to the community level. Just like other tiers of local government, engagement and consultation takes place with residents on their budgets with explanations for any proposed increases.
In short, capping the precepts of parish and town councils would be a regressive step, not only financially but democratically. It would strip these grassroots councils of their ability to respond quickly and appropriately to local and national challenges. With increasing expectations being placed on them – such as taking on assets and services from higher-tier councils, investing in services for older and younger people, helping keep communities healthier and safer, or responding to emergencies like Covid-19 – financial flexibility is essential.
Such a move would also fly in the face of the Government's stated commitment to devolution and localism. Devolution is not just about transferring powers from Whitehall to town halls – it must extend to communities. Empowering people at the grassroots means enabling their most local councils to act with initiative and independence, including financial self-determination.
In an era where trust in politics is under strain, the answer is not to restrict local democracy but to strengthen it. Parish and town councils are one of the most trusted forms of government because they are accessible, responsive, and rooted in real community experience. They are a vital component of a healthy democratic ecosystem, and their financial independence is key to their success.
The nation's most local level of government should be empowered – not hindered – to serve their communities, meet growing responsibilities, reflect local priorities and be the perfect partners to new unitary authorities.
Financial autonomy is not a luxury; it is a necessity for meaningful local governance; an imperative for the success of devolution and local government reorganisation, and to ensure parish and town councils can play the critical role in devolution that not only the Government wants, but their communities do too.
Justin Griggs is head of policy and communications at the National Association of Local Councils
