Abstract
The impact a shift from strong to an empathetic style of policy leadership in central government can have on the direction of local government reform is considered in the UK context where the Thatcherite attempt to supply the strong leadership required to overcome resistance to its fiscal policy gave rise to a "minimalist" policy of reducing council discretion over services and revenue-raising. The local government policy subsystem seems to have been particularly susceptible to the accumulation of disappointment with the inflexibility of this government's leadership style. The shift toward a more "activist" approach to local government policy by the Blair government may therefore be linked to its attempt to pursue the more empathetic leadership style associated with "Third Way" governments.