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

Sorting the finances of social care

By Owen Mapley | 30 July 2026

In light of the Prime Minister’s announcement on social care Owen Mapley says it will take public support and a sustainable financial footing if it is going ...

FINANCE

A mayor's journey shows why councils are essential partners in government

By Shabnum Mustapha | 30 July 2026

Shabnum Mustapha says Burnham’s mayoral experience highlights councils’ vital role in delivering national priorities.

FINANCE

Finding a permanent solution to a temporary problem

By Rebecca Davis | 30 July 2026

Using the results from a recent service set up in the West Midlands, Rebecca Davis reveals how collaborative regional recruitment can empower councils to red...

FINANCE

How to keep away from the cliff edge and thrive

By Steve Guest | 30 July 2026

Nicola Chiverton and Steve Guest outline how, with the right planning and leadership development, a period of significant change and challenges can become on...