26 March 2004
The Conservative Party will go back to first principles and avoid the lure of quick-fix solutions to the council tax controversy, its new local government finance spokesman has told Public Finance.
David Cameron, who was appointed to the newly created post following the surprise resignation of David Curry as shadow local government secretary on March 15, told PF that his party recognised that the present system was unsustainable.
But he made it clear that the Tories would not be drawn into giving any policy commitments until they had undertaken their own thorough review of the current financing regime for councils.
'It would be a huge mistake to suddenly try to invent a new tax,' Cameron said. 'Council tax has become a very big issue and it is causing a lot of pain to a lot of people. We are going to think carefully about what we can do ourselves, and work out the right principles on which to base the system.'
That work would be completed in time for the next general election, expected next year, and the resulting proposals would be presented to voters.
Cameron said much of the blame for the public anger that has accompanied soaring council tax bills lay with the government.
'There is no tax that has people singing and dancing, but there was nothing fundamentally wrong with council tax until it hit its current unreasonable level.'
He highlighted the gearing effect, caused by the current balance of funding in which 75% of local authorities' money comes from central government, as an issue that any reforms to the system would need to address.
The use of passporting had 'made the problem worse'. While not giving any firm guarantees, Cameron suggested that a future Conservative government would shy away from placing unfunded spending commitments on councils.
He went on: 'The Conservatives' policy of decentralisation is a serious one. We want to let local politicians make their own decisions and take the consequences of them.'
Cameron will join a new Conservative team led by Caroline Spelman as shadow local and devolved government secretary.
PFmar2004
