The Local Government Finance Act 1992 is a key piece of legislation in the United Kingdom that reformed the way local authorities are funded. It introduced a system of council tax, replacing the previous domestic rates system. This change aimed to provide a fairer method of taxation based on property values, allowing local councils to raise revenue for essential services like education, housing, and transportation. Additionally, the Act established a framework for local government finance, including provisions for grants from the central government. It also set out rules for budget setting and financial management, ensuring that local authorities operate within their means while delivering services to their communities.