Laura Sharman 05 July 2016

Clark launches review into future of council funding

Councils have been urged to ‘shape their financial future’ as communities secretary Greg Clark launches a consultation into the retention of business rates.

Speaking at the LGA annual conference in Bournemouth, the minister set out his Fair Funding Review looking at what financial freedoms and extra responsibilities could be transferred to councils.

Mr Clark said: ‘Today, we set out the first steps towards making that ambition a reality, transforming the relationship between Whitehall and town halls and putting local government at the heart of delivering strong economic growth for their communities.

‘These next few weeks offer councils an historic opportunity to play their part in these radical reforms and to shape their financial futures for decades to come.’

However, he also set out what element of the current system of local government funding are expected to remain, such as the New Burdens Doctrine, protections for significant reductions in income and a level of redistribution between councils.

In response, the LGA said the new system must reward councils for growing their local economies without penalising those areas less able to generate business rate income.

Cllr Nick Forbes, senior vice chair of the LGA, said: ‘Decisions over which grants and responsibilities councils will have to pay for from any extra business rates income are also crucial. As well as consideration of the grants and services listed in this consultation, councils are keen that any new responsibility they agree to take should support their vital role in driving economic growth.

‘Handing over responsibility for skills and transport services is the most logical fit as it would allow local areas to close skills gaps, improve public transport and boost local economies.’

Cllr Forbes added that council do not want responsibility for demand-led services such as the Attendance Allowance benefit for older people.

‘That is because cost pressures and applications for demand-led services like Attendance Allowance can go up very quickly whereas it can take much longer for local areas to generate business rates income,’ he said.

SIGN UP
For your free daily news bulletin
Highways jobs

Head of Democratic Services, Elections & Monitoring Officer

Harborough District Council
Grade 12 £67,236 – £71,223 plus £3000pa Statutory Officer Allowance
We are looking for an accomplished and proactive leader for our vacant post of Head of Democratic Services & Elections Market Harborough, Leicestershire
Recuriter: Harborough District Council

Social Worker

Durham County Council
£35,412 - £39,152 (pre-progression) / £40,777 - £45,091 (post-progression)
We are looking for social workers who have completed the assessed and supported year in employment to join our Families First teams, working with our Durham
Recuriter: Durham County Council

Social Worker

Durham County Council
Grade 9 £35,412 - £39,152 (Pre-Progression) / Grade 11 £40,777 - £45,091 (Post-Progression)
Are you a nurturing social worker passionate about supporting parents so that children can remain with their birth family?     This could be the right Durham
Recuriter: Durham County Council

Administrative Officer

Durham County Council
Grade 4 £25,583 - £26,824
An exciting opportunity has arisen for a Administrative Officer to join our busy, friendly team, supporting Children and Young People’s Services. 1 x Spennymoor
Recuriter: Durham County Council

Lunchtime Play Worker

Durham County Council
£24,796 pro rata
Lunchtime Play Worker Grade 1 £24,796 pro rata Part Time - 6.25 hour per week, Monday – Friday
Recuriter: Durham County Council
Linkedin Banner