Before 1997

Local government had long played a key role in the Labour Party's organisation and activist base. Several parts of the country, notably South Wales, Tyneside and parts of east London have been dominated by Labour ever since the party developed. During the eighteen years of Conservative rule from 1979 to 1997, Labour had developed huge strength in town halls. However, during Labour's long years in opposition the party had often been embarrassed by so-called ‘loony left’ councillors in places such as Liverpool, Sheffield and Lambeth. Margaret Thatcher's government had abolished the Greater London Council and metropolitan county authorities, introduced the poll tax and ‘rate capping’, and more generally conducted a prolonged war against town halls. Although John Major's ministers were more emollient, the central–local relationship in 1997 was still fragile.

Many senior New Labour politicians were wary of local government. The behaviour of radical Labour councils in the 1980s and early 1990s was widely believed to have cost the party votes in general elections. Tony Blair had never been a councillor and showed no particular concern for he subject.Moreover, his 1997 government wished to project an image of modernity and prudence. There was no room for outdated practices within government, including at the local level. However, despite this challenging background, many senior figures within local government hoped the new Labour government would improve and streng then local democracy.