31 January 2003
Speaking at the New Local Government Network's annual conference, Boateng said greater financial freedoms were now on the Treasury's 'table for discussion'.
His comments came after local government minister Nick Raynsford finally announced a review into the balance of funding for local authorities. Currently, 75% of council funding comes direct from Whitehall.
Local authorities will warmly welcome Boateng's comments, which mark something of an outward departure for the Treasury, widely seen as the guardian of central financial control.
Boateng also reiterated Chancellor Gordon Brown's comments, made in last year's Pre-Budget Report, that the department would consider allowing councils to keep a proportion of new business rates raised. A consultation paper on this is due out this year.
The chief secretary confirmed that Local Public Service Agreements, the Treasury's contract with councils, will be expanded to 'enable councils and focus energy on the real priorities in their areas'.
Whitehall needed to adopt a more corporate approach to dealing with local government and 'speak with one voice'. He added: 'We need to release local energy, ability and commitment to get on with the job.'
PFjan2003
