Intergovernmental Relations in the UK and the EU
Intergovernmental Relations
Local Government in the UK
The UK comprises four constituent units: England, Wales, Scotland, and Northern Ireland. Each has different patterns of local government organization. The structure varies between urban and rural settlements. London and other conurbations are governed by metropolitan corporations. The rest of the country is dominated by a two-tiered structure:
- Counties with county councils, encompassing rural and urban districts. Urban districts are further subdivided into rural parishes.
- Districts with their respective district councils.
Local governments traditionally held broad powers, including education, law enforcement, social services, transportation, safety, health, and housing. However, increased central government control since the 1970s has altered center-periphery relations, reducing local government autonomy, including financial decisions. Conservative governments under Thatcher and Major imposed unpopular policies to cut public spending, significantly affecting local governments. These measures led to constant conflict, with local governments developing tactics (loans and property sales) to counter central government objectives. This has fueled the discussion of center-periphery relations in a political system without a written British constitution.
Local revenues are derived from:
- Local taxes (1/3)
- Service tariffs (1/3)
- Transfers from the central state (1/3)
Thatcher’s attempt to replace local property taxes with a personal “poll tax” was a major factor in her downfall. It contradicted traditional local politics and was perceived as a regressive redistribution from the poor to the rich.
Local elections, held every three years, serve as a barometer of the country’s political mood. They often coincide with the ruling party’s low points in popularity, leading to local control by parties opposed to the national government. Local governments have reduced their operational areas by creating internal markets where certain services are purchased. This is part of a broader trend of re-privatization and transferring services to officials appointed by the central government.
The UK and the European Union
The UK joined the European Economic Community (EEC) in January 1973, following an initiative by the Conservative government under Heath. This occurred after General de Gaulle, a major opponent of British integration, left the political scene. Public opinion was initially reluctant, and the issue remains a significant point of political debate, reflecting the legacy of Thatcher and Conservatives who are generally wary of European unification.
Joining the EU has raised new questions about parliamentary sovereignty, as it requires recognizing the direct application and superiority of European law. This represents a major constitutional change. It also led to the use of referendums, a practice uncommon before the 1970s. A referendum was held on June 5, 1975, to confirm the UK’s continued membership, introducing a supranational institution with law-making powers. Monetary union and fiscal convergence have also been challenging issues for member states.
The European Council in Madrid (June 1989) adopted the Delors Committee plan, outlining three stages for achieving Economic and Monetary Union (EMU), starting in July 1990 with the complete liberalization of capital movements. Despite British resistance and an alternative plan proposed by the UK government, the first stage of monetary union proceeded as scheduled, and on October 5, 1990, the British government joined the European Monetary System’s exchange rate mechanism.