Taking back control, but at what price?

Author: Jack Airey   |  

Writing for the MJ, Jack Airey considers what the UK voting to leave the European Union might mean for local government. You can read the piece in full here or below.

Britain has taken leave of its senses and councils could pay the price. How did such a binary question turn out to be so much more than the sum of its parts? Will a reconfigured British state reflective of ruthlessly exposed political chasms now emerge? Where will the impacts of Brexit be felt most acutely?

In the days that follow the referendum result, none of these questions can be answered with much confidence. Withdrawal will take a number of years and we do not yet know who will lead the country in three months’ time, let alone what divorce from the European Union looks like.

For local authorities already wary of turbulence ahead these uncertainties will, driven by a number of factors, only heighten their sense of risk.

Firstly and as warned throughout the campaign, if the economy falters – perhaps into recession – this could mean further cuts to local authority budgets. Decreasing financial dependence on central government could mitigate the impact, but shortfalls will still be felt through exposure to fluctuations in business rates revenue. This could mean cuts to service provision and/or tax rises; coming at a time when the electorate is fresh from being promised what seemed like everything to everyone.

Secondly there is also the risk that in a crowded field, local government does not have its voice heard during Brexit negotiations. With so much local funding currently derived from the EU it is essential that this is not the case. Negotiation cannot simply be an exercise of displacing authority from Brussels to Westminster. In this regard it is encouraging that Sadiq Khan has underlined how ‘crucial [it is] that London has a voice at the table’ and other local leaders have followed.

Finally there is a real risk that the devolution agenda will stall. Not only will the legislative programme over the next few years be dominated by Brexit, but the civil service will be engaged in a turf war with other central departments, making devolving power less of a priority. On top of this, the main architect of the ‘devolution revolution’ is unlikely to remain Chancellor for much longer.

The UK has taken back control but at what price?