Localis urges government to take action on reforming local government finance
Localis, an independent think-tank, has released a new report entitled “Biting the Bullet: Funding Local Government in this Parliament and Beyond.” The paper, published today, highlights the urgent financial challenges facing local government in England and offers actionable recommendations for reform as the country moves forward.
The report, which was embargoed until 00:01 am on Thursday, November 21, 2024, urges the government to show political courage and expend political capital in driving urgent reforms to the local government finance system in next spring’s Comprehensive Spending Review.
Titled “Government must bite the bullet on local government finance reform, Localis urges,” the report stresses the need for a comprehensive overhaul of local government finance in order to address rising costs in key service areas such as temporary accommodation, special educational needs and disabilities (SEND), and adult social care.
The report outlines various pathways for reform, including updating the central government grant allocation formula, devolving revenue-raising powers, and reforming business rates. It also suggests evaluating council tax valuation levels and implementing a land value tax to provide a stable revenue source for local government.
Sandy Forsyth, lead researcher at Localis, emphasizes the critical role of local government in delivering essential services and urges Treasury policymakers involved in preparing the Comprehensive Spending Review to adopt a bold and pragmatic approach to local public financial reform.
Localis chief executive Jonathan Werran believes that despite the challenges, there is hope for local government in a government that has promised to rebuild council finances from scratch and provide multi-year settlements in subsequent spending review periods. He also stresses the need for political choices and the expenditure of political capital to fix a broken system.
For press inquiries, please contact Nuala Cudmore, Communications Manager at Localis. An advance copy of the report is available for download on the Localis website.
Localis is an independent think-tank dedicated to issues related to politics, public service reform, and localism. Their work includes innovative research, events, and a growing network of members to challenge the current governance orthodoxy in the UK. More information can be found on their website.