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Local tax and spending

Much of the power to raise taxes and allocate public spending is held by the central government in the UK. However, some powers are delegated to devolved administrations and local authorities. Our work in this area describes and analyses tax and spending at these local levels.

Starting in autumn 2016 a multi-year IFS research programme examines major changes to local government finance. The programme considers the impacts of changes so far, provides in-depth analysis of the main issues related to upcoming reforms, and considers the opportunities (and challenges) that would arise from greater fiscal devolution. The programme is funded by Capita, CIPFA, the ESRC and PWC, as well as the Municipal Journal, the Society of County Treasurers and a range of councils from across England.

Local tax and spending

This report, jointly written by researchers at the Institute for Fiscal Studies (IFS), the Local Government Information Unit (LGiU) and PwC, looks at how the views of councils’ decision-makers relate to the characteristics of the councils they represent or work for.
External publication
This report outlines the key issues negotiations should consider when it comes to how to adjust the block grant funding Wales currently receives to account for the newly devolved revenues, and how to update these adjustments over time.
We set out the empirical results and policy implications of new research, which was undertaken in partnership with Lambeth Council and supported with funding from the ESRC.


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David Phillips
Associate Director
Neil Amin Smith
Research Economist
Polly Simpson
Research Economist