FINANCE

Climate for bolder restructuring

The Independent Commission on Local Government Finance’s report shares realistic solutions but doesn’t examine how local public services could be restructured in the interests of financial sustainability, argues Rob Whiteman.

During this period of austerity, the Government has shown little appetite for radical ideas that seek to adapt and enable local authorities to survive increasing pressures.

So, within the parameters, the Chartered Institute for Public Finance and Accountancy (CIPFA) and the Local Government Association asked the Commission to recommend pragmatic solutions, that would not increase government spending but which would allow financial sustainability for public services. In this context, we are pleased that proposals have established a clear direction of travel that the Government should have the capacity to implement.

Within the review, one of the key recommendations made is that there should be an independent funding body. It would provide reassurance in the funding process between central and local government.

Within our manifesto we suggested a similar body under a different name – a grants commission. If it comes to fruition then we think it is paramount that it must exist in the long-term as a standing body which challenges funding allocations to ensure they can respond to local need and are adequate to fund the required activity.

As the Government edges closer to devolution, all authorities must be a part of this process. The Commission recommends that there should be pioneer areas that will be given additional devolved powers; however we feel these must represent a range of authorities, not just those who are already running similar models. Only by doing this we will be able to accurately evaluate the outcomes of these devolved powers.

If these recommendations were considered and adopted, then the climate of change could provide a unique opportunity for local authorities to go even further in restructuring.

The Commission's report, although sharing realistic solutions, doesn't examine how local public services could be restructured in the interests of financial sustainability. Within our manifesto we proposed other ideas, such as aligning services, to better achieve fiscal reform that would meet the needs of our communities.

Rob Whiteman is chief executive officer of the Chartered Institute of Public Finance and Accountancy

FINANCE

Frustrated mayors delay campaign on fiscal devo

By EXCLUSIVE by Dan Peters | 13 March 2025

Labour mayors frustrated by the lack of fiscal devolution are holding back from stepping up their lobbying, The MJ understands.

FINANCE

Finance warning amid growth fears

By Joe Lepper | 13 March 2025

Pressures on local government could become more acute amid fears of ‘lacklustre’ growth, sector experts have warned.

FINANCE

DCN warns of reorganisation risks

By Paul Marinko | 13 March 2025

A new report commissioned by the District Councils’ Network (DCN) has warned reorganisation risks being ‘change that isn’t change’ if it results in ‘bigger, ...

FINANCE

A new standards regime will be a good thing overall

By Abdool Kara | 13 March 2025

It looks likely that the Government will take forward the work of the Committee for Standards in Public Life with a new standards regime with sanctions holdi...

Rob Whiteman

Popular articles by Rob Whiteman