The Local Government Finance Act 1988 is a key piece of legislation in the United Kingdom that reformed the way local governments are funded. It introduced a system of funding based on the collection of local taxes, specifically the Community Charge, which replaced the previous system of rates. This change aimed to make local authorities more accountable for their financial decisions. The Act also established a framework for the distribution of government grants to local councils, ensuring that funding was allocated fairly across different regions. It aimed to enhance the financial independence of local governments while promoting efficiency and transparency in their operations.