Local government is in a fragile state and, even though the Autumn Statement was better than expected, we are in for a tough time. How do we get out of this position?
I am going to try to answer, based on what I think a rational secretary of state could do, unencumbered by politics and pressure groups, but accepting there is no money. I know it is a fantasy!
Starting with local government reorganisation – not just creating unitaries, but also looking at the amalgamation of unitaries that are too small. I would even go further and look to join up the fragmented state, be that education or social care. The role and responsibilities of local and central Government also need a proper overhaul. We have looked at all this before with the Total Place initiative. What struck me about it was the Audit Commission finding that every time money moves through an organisation, 20% is lost to bureaucracy. There is a lot of money to be saved.
The second strand is funding reform. I would go further than the essential need for fair funding and widen the local government tax base into other sources, including tourist tax. Land value uplift from planning gain should be shared between public and private, with infrastructure getting its fair allocation. There would be greater freedom over both council tax and business rates, including reliefs, discounts and even bandings.
Funding reform and reorganisation would mean true devolution, but let’s not add the expense and complexity of another tier of local government. Let’s keep it simple with one leader for each local area.
For good measure I would ensure every civil servant spends six months with a local authority – preferably in frontline services (and vice versa for senior local government officers) with the aim of helping ensure policy works. Now back to the real world.
Chris Tambini is director of corporate resources at Leicestershire CC and president of the Society of County Treasurers
@LeicsCountyHall
