If the Government is serious about the Localism agenda, it needs to give up control of council tax and business rates, a new paper suggests.
The paper, published by the Chartered Institute of Public Finance and Accounting (CIPFA) at its annual conference, aims to find the answers to the tough questions facing local government.
It raises the point that for a truly localist system, councils should be able to set their own tax rate and business rates without central government involvement.
The paper also questions whether local people actually wish to run council services, and if any group could be legitimate if it is not elected.
CIPFA’s CEO, Steve, Freer said: ‘We need to see meaningful engagement with local public bodies and for the rhetoric of localism to fast become a reality.
‘We’ve heard over the past few days of CIPFA conference how well local public services have managed the impact of reduced funding so far.
‘However, public sector leaders both here and in our research are expressing major concerns for the sustainability of frontline services over the next few years.’
The paper asks for thoughts on several key questions:
Which services are the most vulnerable to cuts?
Is the financial viability of some councils really in doubt?
Can new or higher fees really produce siginifcant extra income?
Is Localism only a short-lived fashion, or is it here to stay?
The paper will act as a consultation document and will help inform CIPFA’s policy stance ahead of the general election in 2015.