FINANCE

Sharing means caring

Local government is no stranger to the 'shared economy', which chancellor George Osborne championed in last week's Budget, but the Treasury must fund councils to deliver on its promise, writes Paul O'Brien.

Within the headline figures for savers, and income tax, little detail came to the fore about the future of local government funding but if we scratch below the service the Office of Budget Responsibility (OBR) forecast council spending would fall from its current low levels of  just 2.9% of GDP to just 2.5% in 2019-20.

Local councils remain at the heart of local public services and local economies; it would be foolish indeed to ignore the connection between reductions in council budgets and the impact on all other local public services. In that sense the recognition by the Chancellor that councils have a role to play in developing a 'sharing economy' is welcomed within the budget but it is not a new concept for local authorities nor is it a panacea.

Many APSE member authorities actively pursue policies of positive engagement and collaboration as part of their ensuring role in local areas.

Paul O'Brien

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