The latest delay over the Lyons review has disappointed the LGA, reports Heather Jameson

The delay of the Lyons review – yet again – has been greeted with much scepticism in local government.
Last week’s pre-Budget report delayed the review further, to take into account the current Barker, Eddington and Leitch reviews
It’s the third time the review has been kicked into the long grass – and it comes just weeks after the Government faced a crisis for putting out the White Paper before the Lyons inquiry had finalised the details of funding for local government.
It is just the latest in a long history of delays for the reform of funding. The original balance of funding review was kicked-off under the-then local government minister, Nick Raynsford, after councils clashed with central government over inflation busting council tax rises in 2004.
Instead of coming to a solution before the general election, the review then commissioned Sir Michael Lyons, former chief executive of Birmingham, to take a closer look at the problem – sparking the first criticisms of delays.
David Miliband, as secretary of state for local government, faced with concerns over a potential backlash against council tax caused by property valuation. Rather than face the public’s wrath, Mr Miliband decided to postpone revaluation, and neatly, sidestepped the whole issue.
In yet another delay to the balance of funding, Mr Miliband also announced an extension of Sir Michael’s remit to take in the ‘finance, form and function’ of local government – although form was quietly dropped from the remit later.
As with this most recent change, the reasons behind the delay may well be valid, but they were foreseeable. One local government insider told The MJ that Sir Michael already appeared to be having regular meetings with Kate Barker to ensure their findings did not conflict. It can only be assumed the same was true for the other two reports.
For most in local government, postponing the report further is a frustration. Paul Rigg, the acting head of local government finance at the Local Government Association (LGA) says he is disappointed.
‘We have to remain optimistic. We agree that Barker, Eddington and Leitch are all important to local government, and we have to believe it is about getting this right,’ he says.
However, it is easy to believe the delays are about central government failing to make any decisions about finance.
The LGA handed its final submission into the Lyons inquiry two weeks ago. The proposals called for the Government to have a more joined-up approach to dealing with public spending and for a new ‘public finance commission’. The commission would provide a way for local government to take more control over its own finance, while retaining the elements of control that would be needed to make it more palatable to central government. This could potentially regulate a relocalised business rate, and devolved fees and charges, without the related bun-fights between central and local government.
In addition, the LGA is asking for cash and resources to be ‘pooled’ across public services. The LGA wants to see improvements to council tax, with property valuations updated and the abolition of capping. w