Give us more financial autonomy, say council chiefs
Author: James Carpenter, Planning Magazine |
The survey, carried out as part of a study published today by the think-tank, found that 99.5 per cent of the 195 council leaders and chief executives that responded wanted councils to be given greater financial autonomy.
It also found that 96 per cent of respondents wanted more control over their business rates. More than three quarters of respondents said they would like to be completely independent of central government funding.
Earlier this month, ministers revealed that the first phase of a Whitehall review into local government finance will explore the case for allowing town halls to retain the bulk of the business rates generated in their areas.
The Localis study proposes a “buy-out model”, which proposes that councils be invited to voluntarily buy themselves out of the formula grant – the main opt of council funding from central government – for a fixed period.
The model would allow councils to keep any net extra business rates raised during this period and would therefore act as an incentive to promote economic development, according to the report.
Localis chief executive Alex Thomson said: “The current system is broken and is in need of reform. Local government agrees. We need to put real financial power in the hands of councils again, but it will take time.”