I’m hopeful that this article inspires you to find out more about how YOUR Local Council operates, and how YOU can get involved. Although local government traces its roots back to the medieval period, it evolved into a distinct and recognisable system largely as a reaction to the emergence of the urban poor during the Industrial Revolution. The Local Government Act 1888 was all about organising and modernising local governance. It replaced a messy, old-fashioned system with something more structured and elected, aiming to make local government fairer and more efficient. Here’s what it set out to do when it was first passed:
Before this law, local areas were managed in a patchy way by justices of the peace (basically local bigwigs) and other scattered bodies. This Act set up elected county councils to run things more democratically and consistently across England and Wales. Think of it as giving each county its own mini-government.
It split responsibilities between these new county councils and smaller local bodies (like boroughs and districts). County councils got the big jobs—roads, police, and asylums—while smaller councils handled things like sanitation and local rules.
Big towns with over 50,000 people (at the time) could become “county boroughs,” meaning they didn’t need to answer to the county council and could run themselves. Places like Manchester or Birmingham got this special status.
For the first time, local people could vote for their county councillors (though voting was still limited—mostly men with property). This was a step toward more public control over local decisions.
London got its own county council (the London County Council), but the Act treated it as a special case because it was so huge and complex compared to rural areas.
It included temporary measures to ease the shift—like what to do with existing officials or how to hold the first elections—since this was a massive overhaul.
Local councils in the United Kingdom are the backbone of community governance, delivering essential services and shaping the places where people live, work, and play. As of April 8, 2025, they operate in a complex, multi-layered system that has evolved significantly since the Local Government Act 1888 laid its foundations. Here we explore how councils function today, their legal responsibilities, what remains from the 1888 framework, and the key developments that have modernised their role.
Large chunks of the Act were scrapped or updated by later laws, like the Local Government Act 1933, the London Government Act 1963, and the Local Government Act 1972. These laws redrew boundaries, reshuffled powers, and modernised the system again. For example, the 1972 Act replaced county boroughs with a new setup of counties and districts.
Its real “job” now is as a historical milestone. It laid the groundwork for how we think about local government today—elected councils, clear responsibilities, and a balance between big and small areas. Modern councils in England and Wales trace their roots back to this Act, even if the details have evolved.
A few specific sections still linger, but they’re minor and heavily amended. Local councils in the UK vary by region and structure, reflecting a patchwork of historical reforms and local needs. There are in principle four types of local authority, though within each typology there are marked differences. They are: County Councils, District and Borough Councils, London Boroughs, County, District and Borough Councils have sometimes been amalgamated into: Unitary Authorities, including Metropolitan Councils. The House of Commons has published a very helpful briefing paper on unitary local government. In addition, within more rural areas, there is a lower tier of Town and Parish Councils. In England, the system includes:
Councils are led by elected councillors, chosen every four years (or in cycles in some areas), who set policies and oversee budgets. Day-to-day operations are managed by professional officers. Funding comes from council tax, business rates, government grants, and fees, though financial pressures have grown due to rising demand and static resources. Local councillors in London, and across England, are not paid a salary, but they receive a basic allowance, and potentially a special responsibility allowance, to cover their time and expenses related to their duties.
Some councils use a cabinet system where a leader and key Councillors call the shots, while others have directly elected mayors (e.g., in London or Bristol) with executive powers. Public accountability is maintained through elections, scrutiny committees, and legal duties to consult residents on major changes. Legacy of The Local Government Act 1888, what survived:
Since 1888, local councils’ roles have ballooned to meet modern challenges, shaped by new legislation and societal shifts. Here’s what’s new:
Councils now provide over 800 services, far beyond the 1888 scope. Statutory duties (required by law) include:
Discretionary powers let councils offer extras, like leisure centres or economic projects, if budgets allow.
The Local Government Act (2000) introduced a new political governance system for councils in England and Wales, requiring them to have a separate ‘executive’ in the form of a leader, or elected mayor, and cabinet. To provide a counterweight to this, the Act also introduced the concept of ‘overview and scrutiny,’ whereby every council with an executive governance structure is required to have an overview and scrutiny committee. It gave councils a broad duty to promote economic, social, and environmental wellbeing—a flexible mandate absent in 1888, letting them tackle issues like climate change or inequality.
Since the 2009 Local Democracy Act, combined authorities have emerged, pooling powers over transport, economic growth, and skills across council boundaries. Devolution deals (e.g., Greater Manchester’s 2014 agreement) have handed some areas control over health or housing budgets, a stark contrast to 1888’s centralised approach. The legislation places a duty on local authorities to promote understanding of the functions and democratic arrangements of the authority among local people. The government aims to empower more regions with mayoral combined authorities, further decentralising power, as part of ongoing efforts to streamline governance structures. As part of its levelling up strategy, the government has promised that by 2030 “every part of England that wants one” will have an expansive devolution deal,
backed by a simplified, long-term funding settlement.
Since 2013, councils have regained public health duties (lost after 1888 to other bodies), like tackling obesity or smoking, under the Health and Social Care Act 2012. The Act establishes Health and wellbeing boards in all upper tier local authorities, to promote integrated health and care services and increase accountability. The Act puts clinicians in charge of shaping services, enabling NHS funding to be spent more effectively. Previously clinicians in many areas were frustrated by negotiating with primary care trusts to get the right services for their patients. Supported by the NHS Commissioning Board, new clinical commissioning groups will now directly commission services for their populations.
Councils now raise funds via council tax and retain some business rates, a shift from 1888’s reliance on rates and central grants. Local authorities can generate income through fees and charges for services, such as parking permits and planning applications. However austerity, quango’s and poor management, in addition to increased responsibility has slashed funding, forcing tough choices between statutory and discretionary services.
In 2019/20 (the last year before emergency Covid funding), local authorities in England received 22% of their funding from government grants, 52% from council tax, and 27% from retained business rates. Unlike central government, local authorities cannot borrow to finance day-to-day spending, and so they must either run balanced budgets or draw down reserves – money built up by underspending in earlier years – so as not to exceed their annual revenue. Before 2013, business rates revenues were collected locally and then sent to the Treasury, which redistributed the revenues to local authorities through central government grant funding. Since reforms in 2013/14, local authorities have kept 50% of the business rates revenues raised locally, while the grant they receive from central government has been adjusted to compensate those who generate less locally-raised revenue.
One in five English councils are at risk of bankruptcy due to tighter budgets and rising costs, with discussions ongoing about funding reforms to ensure sustainability (Local Government Facts and Figures: England). The projected net expenditure for 2024/25 is £127.1 billion (Local Government in England, Scotland and Wales).
The 1888 Act’s spirit—local control by elected bodies—lives on, but its rigid structure has been outgrown. Today’s councils juggle a mix of inherited principles and new demands, from Victorian roads to modern social care. The biggest change? Scope and complexity. Councils now manage digital infrastructure (e.g., broadband rollout) and online services, reflecting 21st-century needs unimaginable in 1888. Where 1888 focused on basic administration, councils now navigate ageing populations, climate goals, and economic crises, often with less money than they’d like.
The Public Administration and Constitutional Affairs Committee has called for reform, emphasising clarity in accountability and efficiency, given the complex and often baffling array of arrangements (Local Government in England: Structures).
Councils face rising demand (e.g., for social care) and shrinking budgets, a tension the 1888 framers didn’t foresee. Devolution offers hope for tailored solutions, but critics argue it’s uneven and opaque. As the UK evolves, so will councils—building on 1888’s legacy while adapting to a world of AI, green tech, and beyond. In short, UK local councils today are a blend of 1888’s democratic vision and a century of innovation, legally bound to serve their communities in ways both timeless and cutting-edge. As they navigate ongoing reforms and challenges—whether through devolution deals or digital transformation—their ability to adapt will be crucial in meeting the needs of their communities in the years to come.
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