A think-tank has urged the Government to show ‘political courage’ in reforming the local government finance system in next spring’s comprehensive spending review.
A new report by Localis warns there are no easy solutions to several ‘crises’ facing councils, particularly cost pressures in temporary accommodation, special educational needs and disabilities (SEND), and adult social care.
But it says steps to radical reform must be taken during this parliament, starting with an update to the formula for allocating central government grants to councils, which the Government committed to in the Autumn Budget.
Localis also proposed devolving revenue-raising powers, including ‘tourist taxes’ and environmental levies; reforming business rates; and either revaluing council tax bands or adding more and removing the single-person discount.
Localis chief executive Jonathan Werran said: ‘Fixing a broken system will require political choices and the expenditure of political capital – there will be winners and losers.
‘However, as our report highlights, there is much in the wider arsenal of fiscal policy to draw on for a reformed local taxation system that is more efficient, fairer and sustainable.’
