Modern local government came about in industrial cities and urban boroughs during the 19th century because citizens demanded it. Birmingham and Manchester were the first two places where citizens took up the right to set up a modern local council. These local ‘corporations’ were, in effect, co-operatives formed: by citizens; for citizens; to do those things collectively which citizens could not effectively do as individuals. For much of the 19th century, Birmingham’s council led the way in developing local government. The city grew and prospered economically as a result of its local leadership.

Local councils elected by citizens were so successful that Parliament merged local health boards with them in 1873 and, in 1889, set up county councils covering rural areas too. Over the next 100 years, more functions were delegated to local councils including in policing, health care, education, planning, highways and social housing. The replacement of domestic rates with the poll tax and then Council Tax meant that an increasing proportion of local government services were funded by central government revenue support grants. Local councils at that time, began to look like executive agencies of government. From 1974 onwards, however, Parliament started to take responsibilities for some services away from local councils. Although this trend gathered pace in the 1980s, Parliament still delegates a large amount of work to councils.

‘Statutory’ services, responsibilities and standards are those things Parliament (or a Secretary of State accountable to Parliament) has said shall be managed by councils. The prime responsibility of councils, however, remains to citizens, not Parliament. The Local Government Act 2000 set out this wider responsibility, stating that councils exist ‘to improve the economic, social and environmental wellbeing of their area’ (sometimes this is called ‘sustainable development’).