History of Participatory Budgeting

Historically, three stages can be identified in the development and use of PB:

• First, from 1989 to 1997, was when PB was “invented”. This first occurred in Porto Alegre and other cities such as Santo Andre (Brazil) and Montevideo (Uruguay).

• Second, from 1997 to 2000 was the Brazilian “spread”, when more than 130 municipalities adopted the model, with regional variations.

• Third, from 2000 to present is the stage of expansion and diversification to other Latin American countries and to European cities and towns. European cities have initiated PB processes in Spain, Belgium, Italy, Germany, France, Portugal, Denmark, Switzerland, the Netherlands and the UK. A number of cities in Africa (for example in Cameroon) and Asia (for example in Sri Lanka) are starting their own PB processes.

Development of PB in the UK

Salford City Council was the first local authority in the UK to express an interest in using PB. In 2000 representatives from Porto Alegre met councillors and representatives from the community and voluntary sector and a feasibility study followed. In July 2003 Salford City Council set up a group to take the proposals forward. At this time other local authorities started to express interest in PB as it fitted with emerging policies on decentralisation and increased democratic processes.

In 2005, the then Office of the Deputy Prime Minister (now the Department for Communities and Local Government) funded the development of 5 PB pilots around England.  The PB Unit was created as the delivery arm for the pilots and set up within Church Action on Poverty. 

More than 10 years on from when PB was first introduced to the UK, the spread has been significant.  With over 120 initiatives in England, over 20 in Wales and 7 in Scotland - there has been a leap forward from the initial 5 pilots in England.  PB has been implemented across a range of local public sector providers including local councils - both statutory (upper and lower tiers) and local (town and parish); police authorities and forces; health sector; housing associations and ALMOs; Fire and Rescue Services; services for children and young people and neighbourhood management organisations. 

National Policy Context

The previous, Labour government promoted PB through the The Local Government and Public Involvement in Health Act.  It provided both an incentive and an opportunity for local authorities to adopt PB including the "duty to involve" citizens in decisions which affect them.

The previous government also saw support for PB within neighbourhood policing and community safety.  The Home Office developed three different pilot programmes which incorporated PB including PB in neighbourhood policing, the Engaged Communities Hallmark and allocating funding for Violence Against Women and Girls. 

The current coalition government's Localism Agenda and Big Society ethos fit very well with developing PB with core public service budgets and giving people meaningful involvement in how limited resources are best allocated in neighbourhoods.  Coupled with devolving power to the lowest possible level - ideally neighbourhoods or individuals, as expressed in the Open Public Budgets white paper and pilots such as community budgeting and neighbourhood budgeting, now seems an ideal time to really embed PB as part of local public sector budgeting cycles.