Alison Scott 24 November 2010

Money Matters

It remains to be seen whether the Localism Bill will herald a new dawn of local decision-making, powers and self-determination, or merely be an eclectic mix of policies drawn together under a localism banner.

Certainly, early indications are mixed.

The consultation on council tax referenda could be seen as bringing back capping by another route. How many local authorities will be prepared to risk a referendum on council tax increases after the tax-setting process is finalised?

Local enterprise partnerships will give councils a clearer role in economic developments following the abolition of regional development agencies, but the associated regional growth fund appears to favour private sector bids.

A return to local decision-making on housing and planning matters, and increased power to community groups and voters in areas such as the provision of community facilities, local homes and powers to challenge, suggest a localism based on smaller communities than local authority boundaries.

Local authorities will need to engage more proactively with these smaller community areas.

There are, however, some real positives promised in the Bill. A new general power of competence and the abolition of the housing subsidy system should provide real autonomy and opportunity.

When taken with recent announcements in the Local Growth White Paper on tax incremental funding and the new homes bonus, together with a hint at re-localisation of business rates, there is a real hope of some new opportunities for local authorities to provide real local choices for their communities.

Alison Scott is assistant director, local government, at the Chartered Institute of Public Finance and Accountancy (CIPFA)

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