Local Government Finance
The financing system of local government is one of the major stumbling blocks in devolving real power to local areas. However, the obstacles to reform are enormous. From the grant system to fears over popular protests to council tax reform -the centre's control of local funding stifles creativity, crushes incentives and emasculates local people. Localis has a strong history on this subject, and continues to be at the forfront in calling for major reform. Going forward, the aim will be to provide local government with more control of their local finances. This will mean reducing the need for redistribution, creating incentives for local areas to develop and ensuring that there is sufficient capital finance available to support infrastructure and economic development.
3 Projects
Creating Autonomous financial control for local areas
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Localis respond to NNDR consultation[Oct 24, 2011 - Localis In The News]We at Localis have long been active in arguing for a new system of National Non-Domestic Rates, and are delighted to be feeding into this consultation. A reformed NNDR, we believe, can form a vital cog in any growth strategy for the coming years – driving improved economic performance from the botto
Retaining Business Rates[Aug 9, 2011 - Localis In The News]Sometimes, being a minister at the DCLG must feel like looking over the tennis net to see [this year’s Wimbledon champion] Novak Djokovic grinning back at you... a sinking feeling as you realise you just can’t win.
Business rates reform will help kickstart growth[Aug 1, 2011 - Localis In The News]Alex Thomson of Localis says Government plans are a big step in the right direction
Poor areas 'hit by business rate plan'[Aug 1, 2011 - Localis In The News]The government’s system for repatriating business rates could put public services in poorer areas at further risk, while richer local authorities may lack the necessary incentives for growth, Public Finance has been told.
Councils Would Get To Retain Business Rates Income Above A Certain Threshold Confirms Communities Secretary Pickles[Jul 20, 2011 - Localis In The News]English councils would be allowed to retain a chunk of their £19 Billion of their Business Rate income the Communities Secretary Eric Pickles has confirmed.
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Size of Treasury's business rate 'clawback' could rise to £3.5bn[Oct 17, 2011 - Dan Drillsma-Milgrom, LGC]Government proposals to allow councils to retain local business rates could mean that as much as £3.5bn of local authority-collected cash is retained by the Treasury. Finance chiefs at the LGA now understand that the so-called ‘set aside’ element of the government’s proposals - designed to ensure lo
Business rates retention proposals published[Aug 22, 2011 - James Illman, LGC]Documents addressing a raft of thorny issues surrounding councils retaining their business rates have been published. The Department for Communities & Local Government has unveiled eight technical papers which senior council figures hope will clarify the implications of a localised business rates sy
Business rates announcement expected today[Jul 18, 2011 - James Illman, LGC]Ministers are set to unveil proposals on re-localising business rates to councils today, the Department for Communities & Local Government has confirmed.
Communities secretary Eric Pickles is expected to make an oral statement to the House of Commons before publication of a consultation on the
Reforming Council Tax
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IFS questions Tory council tax plans[Mar 3, 2010 - Local Government Chronicle]When George Osborne revealed Tory plans to freeze council tax in 2008, he lit the touchpaper on a debate which shows little sign of abating nearly two years later.
Councils propose regeneration funds scheme[May 26, 2009 - Financial Times]Four of Britain’s biggest city councils have called on the government to introduce a revolutionary scheme that would let them raise billions of pounds for regeneration schemes on the back of future tax revenue.
Darling backs down over 5% business rate rise[Apr 1, 2009 - The Times]Alistair Darling bowed to pressure last night and cut the planned 5 per cent rise in business rates that was threatening to cripple many small firms.
The financial flexibilities needed for economic development
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Business rates reform is ‘once in a generation opportunity’ says Localis Chief Executive[Oct 24, 2011 - Press Releases]Localis today submitted their response to the government’s consultation on business rates reform. In it, the local government think-tank outlined its proposed model for a new system of National Non-Domestic Rates which, the response argues, can form a vital cog in any growth strategy for the coming
Funding Infrastructure[Sep 19, 2011 - Publications]Funding infrastructure in an age of localism (in association with Lloyds Banking Group)
Councils Need Control of Business Rates[Jan 27, 2011 - Localis In The News]Localis has welcomed with open arms many of the coalition government’s policies to decentralise power to local government and communities. But without genuinely rebalancing the control of finances between central and local government, the government’s commitment to decentralise power will only go so
The 'EasyCouncil'[Feb 26, 2010 - Toolkits]Mike Freer, the former leader of the London Borough of Barnet explains the "easyCouncil" approach that would allow the council a greater personalisation of its budget.
The Future Shape of the Council Programme[Apr 14, 2009 - Toolkits]A programme looking into how to deliver high quality services at a lower cost—allowing the Council to develop through partnerships and harnessing innovation from staff and other partners.
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Cockell: whole place budgets should expand to meet demand[Nov 14, 2011 - Johnathan Werran, The MJ]Council bosses have complained Whitehall resistance to developing and extending the community budgets programme is hindering attempts to boost local regeneration plans.
Wandsworth again pledges lowest tax[Feb 19, 2010 - Local Government Chronicle]Wandsworth is again ready to boast the lowest council tax in the UK for an average Band D property after proposing a freeze for the third year. Deputy council leader Maurice Heaster said the council’s low tax record should serve as a benchmark for national government.
Give councils the power to set benefits[Jan 28, 2010 - ConservativeHome]Interesting report in The Guardian that the Shadow Treasury team are in talks with Conservative councils about handing over to Town Halls the responsibility for setting and distributing certain benefits such as Job Seekers Allowance.
