MPs call for more devolved transport funding

1 Mar 07
Town hall leaders have backed MPs' calls for more funding and financial powers to be devolved to councils to help strengthen major cities' transport infrastructure.

02 March 2007

Town hall leaders have backed MPs' calls for more funding and financial powers to be devolved to councils to help strengthen major cities' transport infrastructure.

The All-Party Urban Development Group this week published a report criticising Whitehall's micro-management and bureaucracy, which it said was stifling new investment.

The report, Loosening the leash, published on February 26, called on the forthcoming Lyons Inquiry and Comprehensive Spending Review to devolve powers to local authorities.

Clive Betts, who chairs the group, said: 'Britain's cities are being held back by our centralised funding system. Government needs to empower city leaders to take more of their own decisions.'

David Sparks, chair of the Local Government Association's Transport and Regeneration Board, welcomed the report, saying opinion-formers were echoing the LGA's argument that councils were best placed to make local decisions.

'Having the backing of this influential group of MPs only strengthens our argument that government must loosen its grip on decision-making.'

The report calls for two new financial powers to increase local investment in infrastructure. Tax Increment Financing, already used in the US and Australia, lets local authorities build infrastructure ahead of development, while Supplementary Business Rates could be used to ring-fence money for transport improvements.

The report also warns that the Planning Gain Supplement, due to be introduced in 2009, could result in further centralisation.

PFmar2007

Did you enjoy this article?

AddToAny

Top