Lean cuisine

19 Jun 08
MIKE THATCHER | If anyone had doubts about where local government stands in the pecking order, it was made clear in no uncertain terms this week.

If anyone had doubts about where local government stands in the pecking order, it was made clear in no uncertain terms this week.

After his speech to CIPFA’s annual conference in Brighton, local government minister John Healey was asked whether there might be any extra money in the coffers for councils. His response was a blunt ‘no’. Moreover, if there were additional funds, they certainly wouldn’t be heading the way of town and county halls.

Councils would need to find any extra money themselves, Healey stressed, and they should begin by making more of an effort on charging for services.

The minister did offer some crumbs of comfort – principally on Sir Michael Lyons’ recommendations in his 2007 report. Hitherto, the government has ignored most of these – including a revaluation of properties, extra council tax bands and the abolition of capping powers. However, Healey adopted a more emollient tone.

He clearly came to praise Lyons. Far from burying the report, he described it as ‘the most authoritative ever on local government’.

The minister emphasised the government’s acceptance of two of Lyons’ recommendations – on supplementary business rates and a community infrastructure levy. He even indicated that Labour would offer proposals on council tax reform ahead of the next election.

This was no radical U-turn, but it was a welcome change of tack. In the current climate – with the public facing a possible recession and wary of stealth taxes – the best we can hope for is a Lyons for lean times. Healey should examine the suggestions put forward by Local Government Association chair Sir Simon Milton in his speech to the conference. Milton proposed some ‘simple steps’, such as deregulation of charges and the abolition of capping.

‘Lyons lite’ wouldn’t amount to a revolution, but it would give councils some solace in the difficult days ahead. And it would suggest, for once, that ministers are prepared to back up their warm words with appropriate action.

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