19 January 2007
Local authorities must make residents understand the connection between taxation and services, and exercise spending restraint, to reverse public anger over rising council tax, according to local government minister Phil Woolas.
Speaking at the New Local Government Network annual conference on January 17, Woolas said the new council powers and freedoms in the Bill now before Parliament are an opportunity for local authorities to reconnect citizens with their services. If the public has more say over the services and understands how they are funded, attitudes towards council tax will change, he claimed.
'If local taxpayers see joined-up delivery and services – in which they have a say – improving, together with a stable local tax, then the dislocation will begin to close and perceptions may change.'
But his comments have raised concerns that the government might have gone cold on town hall finance reform, which is being considered by Sir Michael Lyons.
His inquiry was set up after public anger over soaring council tax rises led to a showdown between central and local government. Some Whitehall departments were accused of passing unfunded commitments on to authorities while some councils were capped.
Local Government Association chair Sandy Bruce-Lockhart, speaking at the same event, said that if local authorities were to fulfil their role as leaders they needed wide-ranging new powers and greater financial freedom – elements missing from the Bill.
'If we are to truly shape the places we represent and serve, it is essential that there is a radical devolution of powers and meaningful change to the way local government is funded,' he said.
PFjan2007
