independent action by local government is similarly virtually
unthinkable. An important element in the relationship is the cultural
one of the expectations of the parties to the relationship. Another
dimension is a legal one. In the UK until recently the concept of ultra
vireslimited local authorities to those actions explicitly authorised by
law (that is laws passed by the central parliament). On the other
hand, the assumption in the United States is that governmental
powers not explicitly granted to the centre by the constitution belong
to the states or the people. In France and in many continental
European countries communes are seen as having an inherent right
to act on behalf of their inhabitants in the absence of legal restraints.
From a financial point of view central control over budgets
obviously restricts localities. The need for French councils to have
their budgets approved by the next highest level of authority used to
be regarded as evidence of their relative inferiority by British writers
on local government. However, the current system of financing UK
local government is based effectively on the central government
setting spending limits for local authorities and penalising them
through the system of financial grants from the centre if they do not
abide by a central civil service judgement of their needs. US local
governments seldom have such limitations – although they may be
required to submit large-scale borrowing to a referendum of local
voters.
Related to this is the important question of the tax base allowed to
local government. Again the US freedom to set effective levels of
sales and property taxes might be compared favourably with the very
limited powers now allowed to UK councils – which cannot even set
their own rates of taxes on local business premises. Similarly in many
parts of the South the major constraint on the growth of effective
local government is the lack of any realistic source of independent
income.
The case for more power for local governments than they achieve
in most states outside of the USA is a persuasive one. The imple-
mentation of central policies by local authorities allows local people to
make some independent assessment of relative local needs and
priorities and allows local circumstances to be taken into account
more quickly – more rational policies which suit local needs should
ensue. The democratic principle of ‘subsidiarity’ has already been
discussed – local decision making allows more participation by those
STATES 167