Abstract
Local government expenditure in England and Wales is under pressure from the central government. Attempts to control local spending have involved the development of new grant arrangements which threaten the traditional freedom of local authorities to determine their own level of spending. The article traces the recent shift in emphasis from concern with local government spending to the spending of individual authorities, and concludes that local government democracy is being eroded. The erosion of local democracy is not necessarily the product of deliberate political philosophy but a result of political incompetence and a cultural disdain for the values of local freedom.