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Transparency20 December 20255 min read

Transparency in Local Government: Why Open Data Matters

Trust between councils and citizens depends on openness. Here's why transparency in local government finance isn't just good practice — it's essential.

The Foundation of Local Democracy

The Local Government Transparency Code states it plainly: "Transparency is the foundation of local accountability and the key that gives people the tools and information they need to enable them to play a bigger role in society."

When citizens can see how decisions are made and how money is spent, they can engage meaningfully in local democracy. Without that visibility, participation becomes impossible.

A Brief History of Local Government Transparency

Transparency in UK local government has evolved significantly over the past few decades:

  • 1980s–1990s — Early legislation began opening up council meetings and files
  • 2005 — Freedom of Information (FOI) laws granted citizens the legal right to request information from public bodies
  • 2010 onwards — Open Data reforms required councils to proactively publish key datasets, including all spending over £500
  • 2014–2015 — The Local Government Transparency Code set mandatory publication requirements
  • 2025 — Updated codes continue to expand transparency requirements

The government's aim was to create an "army of citizen auditors" who could hold councils accountable through access to data.

What Councils Must Publish

Under the current Transparency Code, councils are required to publish information including:

  • All spending transactions over £500
  • Contracts valued over £5,000
  • Information about council assets
  • Decision-making processes
  • Senior staff salaries
  • Parking revenue and enforcement

Additionally, councils must publish annual Infrastructure Funding Statements detailing S106 and CIL receipts and expenditure.

The Gap Between Requirement and Reality

While the legal requirements exist, research suggests that many councils publish data because they're required to, not because they see its value. This leads to:

  • Data published in formats that are hard to use or analyse
  • Inconsistent publication schedules
  • Information buried deep in council websites
  • Technical jargon that excludes non-experts

True transparency means not just publishing data, but making it accessible and understandable.

Why Transparency Matters for S106

Developer contributions are a perfect example of why transparency matters. When new homes are built, residents want to know:

  • What contributions were secured from the developer?
  • What projects is the money being spent on?
  • When will these projects be delivered?
  • How much money remains unspent?

If councils can't answer these questions clearly, trust erodes. Residents see new developments but not the promised benefits, and cynicism grows about whether the system works for them.

The Benefits of Being Open

Councils that embrace transparency, rather than just complying with it, see real benefits:

Increased Trust

When residents can see how money is being spent, they're more likely to trust that their council is acting in their interests.

Better Decision Making

Open data enables residents, community groups, and local businesses to contribute insights that improve decisions.

Economic Value

The availability of open data can enable local businesses and organisations to develop new services or identify opportunities.

Reduced FOI Burden

When information is proactively published, fewer FOI requests are needed, saving staff time.

What Good Looks Like

Leading councils are going beyond minimum requirements:

  • Publishing data in machine-readable formats that enable analysis
  • Creating dashboards that make complex information accessible
  • Engaging with community groups to understand what information they need
  • Updating data regularly, not just at required intervals
  • Explaining the context behind numbers, not just publishing raw figures

The Role of Technology

Modern software makes transparency easier than ever. Purpose-built systems can:

  • Automatically generate compliant reports without manual effort
  • Provide real-time dashboards for internal teams and public use
  • Track what's been published and what's due
  • Present information in accessible, understandable formats

Moving Forward

The government has launched GDS Local, a new unit working with councils to improve digital services and data capabilities. Combined with ongoing updates to transparency requirements, the direction of travel is clear: more openness, not less.

For councils, the question isn't whether to be transparent, but how to do it well. Those that treat transparency as an opportunity rather than a burden will build stronger relationships with the communities they serve.

Make S106 transparency effortless

Council Compass generates compliant reports with one click and provides citizen-friendly dashboards.

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