Plea to remove fear of capping from councils

3 Jul 09
Local authorities should be free to set their levels of council tax without fear of capping from central government, CIPFA has said
By Alex Klaushofer

June 26, 2009

Local authorities should be free to set their levels of council tax without fear of capping from central government, CIPFA has said.

The CIPFA Manifesto Better ideas, better public services, published at the conference, argues that freedom to levy taxes is central to making local services accountable to citizens.

‘Local authorities should be responsible and accountable for their decisions in relation to the setting of budgets and the local council tax,’ the report said.

‘Capping is deeply damaging to both central and local government. Both are likely to be held accountable in the public mind for decisions over which they have less than full control.’

While the government is free to express views about council budgets and taxes, it should leave sanctions to the local electorate, it added.

 ‘It should rely upon local accountability arrangements – principally local elections – to pass judgement on and call to account any perceived excesses.’

The proposals come as part of a range of reforms aimed at improving openness and public trust in the wake of the MPs’ expenses scandal. They include the publication of Whole of Government Accounts and the inclusion of costings and expected outcomes in all new policies.

Councils should be granted new legal powers enabling them to ‘enter into any venture which is intended to be beneficial to citizens and communities’, the report suggested.

Steve Freer, CIPFA’s chief executive, said: ‘If we are to reverse the cynicism which currently surrounds UK politics… the political parties have to find a new way of governing which reconnects with people, engages their interest and, over time, wins their trust.’

He added: ‘Our overriding aim is to encourage a healthy, open debate and to ensure that this critically important challenge is fully and clearly addressed by the political parties.’

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