Abstract
This article develops an ethical justification for local government based on classical liberal theory and analyses its implications for the structure and functions of a system of local governance within a liberal democracy. It will argue that local government ought to determine and implement those policies that do not infringe the interests of those outside its area and represent its views to other agencies where its policies affect others. The principle would require, as a consequence, radical restructuring to secure a multi-tiered system based on spatial communities of interest as is established in much of Europe and North America. The role of the central government in the context on inter-governmental relations would be to act as the guarantor of both individual and collective freedom and equality of opportunity between local governments as well as determining those policies that affect all members within the national polity.
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