In 1985, after the Thatcher government capped councils’ spending, 15 Labour-led authorities responded by refusing to set budgets. Their hope was that ministers would concede, rather than take direct responsibility for providing local services. The strategy failed but the memory of the tactic endured. Among its supporters was John McDonnell, then the finance chair of the GLC under Ken Livingstone.
Following Jeremy Corbyn’s election on an anti-austerity platform, some of his supporters have been calling for councils to emulate this stance. Last month, the Lewisham Momentum group urged activists to petition the local authority to set a “no cuts budget”.
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