Councils should be given more control Council taxMPs have warned that the current disconnect between local allegations and service quality risks to reduce the very foundation of the local democracy,
Local financial stability check Government Concluded that interim powers should be developed to the councils, which is a more wide overhaul described as the “most inappropriate and retrograde” Tax Today in use in England “.
Commons Housing, Community and local government The committee’s report recommended that individual authorities be empowered to re -evaluate assets in their areas, define property bands, determine rates for those bands, and to apply discounts.
Beyond the council tax, the report suggested that a wide deviation of fiscal powers, such as a tourist tax ability, should also be considered to address the increasing financial stress on the local government, extended by penance measures launched in the 2010s.
Deputy Prime Minister Angela Rener Recently voiced his support for “more push” towards fiscal deviations, aligning the government’s commitment to central decision making in local regions.
In addition, the committee advocated changing the ringfahes of the Central Government of funding with “a system of rigorous results-based accountability”.
This will ensure that local authorities are attributed to achieving the agreed results within their overall budgets, rather than fulfilling the goals that they spent.
The Council Tax Bill increased by 5 percent in April for the third consecutive year, as almost all the councils increased the bill, or maximum permission.
In 1991, the revaluation of assets with the Council Tax band in England has long been called in England based on property values.
The Institute for Fiscal Studies found that the most expensive assets (band H) attracts three times more tax as at least valuable (band A), which is now despite being more than eight times the price, as prices have increased the most in rich areas.
“Council tax is therefore out of both date and arbitrariness, and is highly retrograde in relation to property values,” it said.
A recent analysis commissioned by the County Council Network found that the councils would allow localized taxes to be administered and maintained, which will promote funds for more than £ 4 billion services in many areas and “supercharged” economic growth.
Florence Ashlomi, the Labor Chair of the committee said: “When residents are paying more and more in taxes, but regular, daily services, less and less viewing, such as fixing libraries and pits, there is a risk of trust in local democracy.
“The government has been overseas in England. The current financial pressure on the local government is also largely mandatory, high cost, demand-de-dancing services, such as social care and special educational requirements or disabled, where the councils have very little control over these needs.
“Councils are trapped in a strategic by the central government, which lacks flexibility or control to prepare creative, long -term, preventive solutions among local authorities that can provide better value for money.
“If, as a country, we are going to improve development and local services, Westminster There is a need to reduce your grip and the councils have the power to control their own affairs and be accountable to their own electoral. ,
The report called for the government to reconsider its decision to free local housing allowance rates and expand its support for local authorities to obtain new housing stock through local authorities housing funds for local authorities.
Answer to conclusions, Local government union (LGA) said that the findings provide more evidence of the delicate status of the local government’s finance.
Chairman of LGA’s economy and resource board PT Marland said: “More financial certainty and a simple funding system are important. However, all the councils remain under pressure and the councils face to increase tax bills to try and protect services at the same time to further cut.
“A permanent, long -term financial model for the local government should lead all the councils with enough resources to meet the rising cost and demand pressure.”
The London Council, which represents 32 Boro in the capital, said the report shows that “the change has long been overwhelmed”, but expressed concern over the government’s plans to change the way of funding.
London Council President Claire Holland said: “Government plans to improve council funding are important to ensure that they get funding that actually matches the level of their needs and enables them to deal with rapidly rising costs and pressure.
“It is true that the government is targeting the lack in the new formula, but we are worried that measures used in current proposals will not be sufficiently responsible for London’s extreme housing poverty.
“This may mean that London is left without funding, we need to distribute important local services and return to financial stability.”
The spokesperson of the housing, communities and local government said: “The government is taking decisive action to fix the broken council funding system, so local leaders can distribute important public services that rely on their communities.
“We have already announced more than £ 5 billion new grant funds for local services at the top of £ 69 billion this year to promote council finance, and we will proceed to improve the funding system to create fit for the future.
“The councils will ensure that the councils will get the support they need and the council tax can be raised without a referendum to save the residents from further cost by placing a 5% limit on the amount.”
