Laura Sharman 30 October 2014

Commission calls for ‘urgent’ overhaul of local government finance

Commission calls for ‘urgent’ overhaul of local government finance image

Local government in England could be funded largely by locally raised money if the finance system was reformed, according to a new report out today.

In its interim report, the Independent Commission on Local Government Finance said an urgent reform of financing is needed to give local areas greater freedom. It argues that many public services will only be sustainable if councils have more control of their finances.

Public Money, Local Choice examined international cities to find out how different local governments are funded. It concluded that England lags behind when it comes to fiscal freedoms as up to 74% of its funding comes from central government. In Tokyo this figure is 8%, while Berlin it is 24%.

Chair of the Commission, Darra Singh, said: ‘The current local government finance system is broken. The way it allocates money is irrational and unintelligible. It is virtually impossible for government ministers to understand, let alone the public.

‘The Commission believes the need for reform is urgent, and sees an opportunity to establish a funding system for local government which is largely self-sufficient. This should include powers to set council tax bands and revalue properties locally.’

Visit The MJ for an interview with Darra Singh on why the commission is the 'last throw of the dice' for local government finance.

For your free daily news bulletin
Highways jobs

Finance Assistant

City of York Council
£18,865 - £20,013 per annum
The successful candidate will... York, North Yorkshire
Recuriter: City of York Council

Social Worker - Children With Disabilities

Essex County Council
£30906 - £42254 per annum + + Free Parking and Benefits Package
Social Worker - Children With Disabilities - ChelmsfordPermanent Full Time£30,906 to £42,254 per annumClosing Date
Recuriter: Essex County Council

Strategy Officer

Barnet London Borough Council
£39,867 - £44,790 Per Annum
An exciting opportunity for a Strategy Officer to support the Strategy Managers in delivering high-profile corporate projects and the development... Barnet (City/Town), London (Greater)
Recuriter: Barnet London Borough Council

Community Innovations & Funding Manager

Barnet London Borough Council
£47,841 - £52,886 Per Annum
An exciting opportunity for a Community Innovations & Funding Manager to help secure funding for Barnet’s voluntary sector, and... London (Greater)
Recuriter: Barnet London Borough Council

Commissioning Manager

Essex County Council
Commissioning ManagerPermanent, Full Timeup to £58,752 per annumLocation
Recuriter: Essex County Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue