The Government's ambition that participatory budgeting should be in use in all local authorities by 2012 may, initially, worry senior officers and members, whose experience of consultation on the annual budget ranges from apathy to a complete hijack by the Taxpayers' Alliance. The current consultation on a draft national strategy for participation makes it clear that this is only one of a number of forms of participatory budgeting. In practice, most case studies are about the allocation of only small elements of total revenue or capital budgets. Many councillors struggle with the complexities of the budget-setting matrix. However, it is the financial embodiment of an administration's key policy plans, and the regular testing of the democratic mandate is what distinguishes local government from other sections of the public sector, and legitimises the annual budget-setting process. In multi-tier authorities with county, district, and parish tiers, one of the challenges will be to develop arrangements that are understandable to local communities while retaining the discretion of each tier. Participatory budgeting doesn't come without its costs. To ensure full and fair participation when public money is being allocated in this manner is paramount. Participants need to be educated and supported in the process, especially as many of the participatory budgeting projects are about trying to make a real difference in disadvantaged areas and communities. The trickiest issue for the district tier will be identifying resources which can be channelled into participatory budget exercises. With almost half of them being on the floor with a 0.5% increase in grant needing to find hundreds of thousands of pounds each year, just to balance the budget, will be a challenge. Mary Hawkins is director of finance at Warwick DC and president of the Society of District Council Treasurers
