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I write this from the Hague, the nearest thing to a constitutional city I have ever visited. John Ransford is chief executive of the Local Government Group Councils Although Amsterdam is the capital city of the Netherlands, the Hague is the centre of government, as well as the home for most embassies and some of Europe's leading constitutional organisations. Architecturally interesting, and with a feeling of power – big oil companies are based here, too – it has a clean and prosperous image. I am here for a meeting of four European LGA equivalents, from Germany, Denmark, Holland and England. I have written in this column before that there is rich learning to be had from our partners. We became so preoccupied with own processes and cultures that traditions in mainland Europe tend to be ignored. The key thing that strikes anyone about local government in the Netherlands is how close it is to the centre of power. That is true of the VNG (Association of Netherlands Municipalities) which has its headquarters in a leading-edge, architecturally-designed converted church, a short walk from the centre of government. Twelve provinces and more than 400 municipalities in a country of 18 million people – admittedly densely populated on land not occupied by the sea – ensure there is a balance between national, regional and local. Taken together with formal structures as to how mayors, municipal officials and the council and executive work together, there is direct evidence of local government being an essential part of the state apparatus. During the day, news came through of the UK Government's final local finance settlement for English local authorities. It is immediately evident that the Government has ignored the key elements of our case, and the next four years will be extremely tough for decent service delivery. Our Dutch hosts explained how this process operates in the Netherlands. Information is prepared jointly by the Ministry of the Interior, the lead for local government, and VNG. The finance minister verifies the information and options, and the prime minister chairs the crucial meetings. The ‘spending' ministers – health, education and so on are called in to present their proposals, and are held to account for them. The prime minister then decides on the settlement in direct consultation with local government leaders. Tough times are coming to the Netherlands too. But at least there is a mutual respect, division of power, and a sound process on which to build.

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