South East Councils (SEC) has responded to the Housing, Communities and Local Government Committee’s consultation:
“The Funding and Sustainability of Local Government Finance”
As Government seeks to reform local government finance, this inquiry is considering whether the local government finance system is fit for purpose and assess how it can meet the needs of local authorities and service users.
It will explore how much control local authorities have over their own finances and whether this is enough to achieve financial sustainability.
SEC Chair and Leader of Test Valley Borough Council Cllr Philip North said:
“The new Government is attempting to reform local government on a dramatic scale.
Negotiations on devolution arrangements are taking place across the country and the prospect of abolition is looming over large numbers of councils in the South East due to mandatory reorganisation.
New ministers have talked about curbing endless directions from above, as in recent years, and enabling local councillors get on and focus on future delivery for local communities.
There are a range of views across our region on the new plans and ambitions, some will be supportive, others perhaps neutral, however there are some that will remain to be convinced that this tumultuous period will not feel like more of the same.
For years Councils have weathered a storm of significant financial challenges. Turbulence in Westminster has directly translated into instability in budgets at the local level.
Whilst this Government is taking steps in the right direction by introducing multi-year settlements and bringing an end to competitive funding pots, there is a risk of trying to do too much, too soon.
Reorganisation is no panacea. While it offers a chance to reform local government finances under new structures, it remains another central Government mandate that is diverting attention away from a focus on sensible long-term decisions to serve local residents.
The newly formed combined authorities will find themselves facing the same, ultimate issue, of local government finance – with fresh debates over whether the first multi-year settlement is sufficient.
South East Councils (SEC) has long campaigned for reform of local government finance to bring fiscal decision-making closer to communities to be held accountable through local democracy.
SEC brings together a diverse mix of local authority views – sometimes with differing opinions – however a common theme is that locally elected representatives are best placed to make decisions about their area.
Opportunities exist across tax, spend, and more closely tying retention to local growth to empower Councils, bring an end to culture of the begging bowl, and make local government finances sustainable.”
Our full response to this consultation can be accessed here.
