Councils have been urged to ‘nudge or budge’ businesses into taking a more socially responsible stance.
A new report argues local authorities are well positioned to take a leading role and have a number of potential tools at their disposal.
They include competing with businesses by introducing their own goods and services and helping ‘socially beneficial’ enterprises enter the market. Councils can also use their assets and buying power to exercise influence, it said.
The Better Business report, by the Association for Public Service Excellence (APSE) and New Local Government Network (NLGN), said local government should work to build the case for powers that allow them to ‘better regulate local markets to support national policy objectives’.
‘From energy pricing through to fast food outlets, local councils and other areas of the public sector pick up a cost created by irresponsible or poorly regulated markets,’ said APSE chief executive Paul O’Brien.
‘Whether it is issues relating to fuel poverty, or obesity related to poor diets, a cost is created on an already overstretched public purse.??
‘From simple measures such as collaboration with business and encouraging behaviour change amongst residents, through to more strident interventions such as the use of enhanced statutory powers, councils can be much more effective in ensuring that they help to develop responsible business practices in local areas.’
Simon Parker, director of NLGN, said: ‘At a time of unprecedented austerity, councils need to seek innovative new ways to give citizens better choices, so they are not forced to rely on overpriced payday lending, expensive consumer credit and inflated energy bills. Formal regulation and prohibition should remain the weapon of last resort; the best local authorities are setting up their own businesses to play the market at its own game and return a sustainable profit.’
