FINANCE

Slowing down to move ahead

Kevin Muldoon-Smith looks at fixing local government finance and the trade-off between acting now and taking time to think and reform

© Talaj / Shutterstock.com

The new Government has a commanding majority and is laying down long term foundations for its time in government around national missions of clean energy, growth, health, opportunity and safety. Local government is a key local partner in these missions – arguably its foundation and key delivery agent. However, the local government sector is in the eye of a financial storm, severely underfunded, undermined by continual uncertainty and pressurised each day by new demographic and place-based concerns.

The sector is basically bankrupt, suffering more than a decade of unfunded mandates, lacking a meaningful process of relative needs assessment and equalisation between location, suffering the frustration and cost of competitive bidding and the straitjacket of a limited war chest of income sources. Georgia Gould, the new Parliamentary Secretary in the Cabinet Office, is going to lead a review into this situation.

Popular articles by Kevin Muldoon-Smith

SUBSCRIBE TO CONTINUE READING

Get unlimited access to The MJ with a subscription, plus a weekly copy of The MJ magazine sent directly to you door and inbox.

Subscribe

Full website content includes additional, exclusive commentary and analysis on the issues affecting local government.

Login

Already a subscriber?