19 June 2008
Tight financial settlements for town halls and the economic downturn might lead to greater financial freedoms for councils, the chair of the Local Government Association has predicted.
Sir Simon Milton told Public Finance at the conference that the government would consider allowing greater flexibility at a local level if economic conditions put extra pressure on public services.
'At the end of the day the government is as sensitive about citizens' reactions to services as us. If the impact of the financial downturn is that citizens need more public services but they are not available, that is going to transfer, and ultimately the government will get the blame,' he said.
Milton told delegates at the conference in Brighton, during a session on how town halls could do more with less, that times were tough for the economy, making delivering high-quality services difficult. And the next 12 months were set to be tougher.
But he said the situation was not all 'doom and gloom', with local authorities 'established as leading the public sector when it comes to delivering efficiency savings' and good results in the Comprehensive Performance Assessments.
But to deliver excellent services, councils should be supported with greater policy flexibility under 'politically deliverable reform'.
'The deregulation of fees and charges, which raise almost £11bn a year, would be a good start. Giving councils a general power to set fees at levels that cover costs, not making a profit, and take into account local, social and environmental objectives would be a good first step,' Milton said.
PFjun2008
