FINANCE

Hollowed out local government sets off a downward spiral

'It is time to move the debate on from platitudes and tinkering with year-to-year budgets to the wholesale reform of the financial powers available to local government', says Mo Baines.

It is intellectual bankruptcy that remains at the heart of local government's financial woes, not mismanagement. While Lord Morse recently explained the mischaracterisation of his comments in The Times (The MJ 11 January), the mantra of ‘mismanagement' is wheeled out as a convenient explanation far too often.

Central government can spend its way out of crises because, unlike councils, it does not have to balance its books yearly.

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