FINANCE

Sir Merrick's fiscal rallying cry

Local authorities should be free to set the pace of their own fiscal devolution, chairman of the LGA tells MPs.

Local authorities should be free to set the pace of their own fiscal devolution, chairman of the Local Government Association (LGA), Sir Merrick Cockell told MPs this week.

Giving evidence to the Commons Communities and Local Government Committee's inquiry into fiscal devolution to cities and city regions on Monday, Sir Merrick said the sector was used to travelling at different speeds and to working to an imperfectly designed set of structures.

He said cities and combined authorities had won further freedoms by taking the initiative.

‘We would like government to let local government go at its own speed but to actually make it clear the freedoms and opportunities are there. Moving away from that earned autonomy idea to "this is what's available and go at your own speeds,"' Sir Merrick said.

When questioned by North Tyneside MP, Mary Glindon, as to who should judge whether an area was ready for fiscal devolution or not, Sir Merrick said the areas should themselves decide without asking or needing the approval of government.

He cited the success of community budgets, whole place budgets and the troubled families programme in breaking down silo barriers, pooling budgets and sharing staff.

‘So we would say it's time to stop piloting and actually to accept this is the way forward – that government should let that happen,' Sir Merrick said.

‘Local authorities or groupings shouldn't need to have to go as supplicants continually to government for the fiscal changes,' he added.

Sir Merrick insisted this devolution process should become the norm in local government, and not subject to an endless Whitehall bidding process.

Rob Whiteman, chief executive of the Chartered Institute for Public Finance and Accountancy told the Committee local government, despite being in a financial straitjacket with little room for manoeuvre, had successfully raised an argument for a wider perspective on public spending – given the Coalition had only made 40% of planned deficit reduction cutbacks.

‘The broader issue will always be form should follow function,' Mr Whiteman said.

‘What does government want from local government, what is the role of local government and clarity around that.  And then what is the best way of funding it,' he added.

 

Jonathan Werran

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