By Jaimie Kaffash
11 June 2010
Funding cuts could have ‘devastating’ effects on local government and harm the most needed services, warned the incoming chair of the Commons local government select committee.
Labour MP Clive Betts told Public Finance that councils will find it hard to plan ahead as they will be constantly cutting budgets. He added that local finance reform will be vital for councils to carry out the cuts and the select committee will have a central role in building consensus for change.
‘Ultimately, local government will be able to bear anything in terms of cutting spending but the effects on communities could be devastating,’ he said, adding that there were concerns about cuts being made part-way through the year.
‘Councils cannot plan ahead or look at priorities, they have to just cut what’s available. Local government has been told to cut some of those budgets that are directly related to areas of greatest need, such as the Working Neighbourhood Funds and housing market renewal. These are areas that have special problems.’
Betts said that, if councils were being forced to make cuts, they would have to be given greater control of their finances. He acknowledged that ‘ideas of finance reform seem more attractive in opposition than in government’ but added there was a consensus for localism in Westminster. He also pointed to cross-party support from local government for finance reform.
‘It is a nonsense that we have a council tax banding system that relates to values of property from 1991,’ he said.
‘There will always be winners and losers when there is a change in taxation and there is always the temptation for the opposition to say that the losers will never stand for it.
‘Can we work across parties to get somewhere? In a select committee, we probably can. I think this is the area that a select committee, objectively looking at the evidence and working collectively, can be of real benefit.’
Betts was first elected to the Commons in 1992 and represents the Sheffield South East constituency.
11 June 2010
Funding cuts could have ‘devastating’ effects on local government and harm the most needed services, warned the incoming chair of the Commons local government select committee.
Labour MP Clive Betts told Public Finance that councils will find it hard to plan ahead as they will be constantly cutting budgets. He added that local finance reform will be vital for councils to carry out the cuts and the select committee will have a central role in building consensus for change.
‘Ultimately, local government will be able to bear anything in terms of cutting spending but the effects on communities could be devastating,’ he said, adding that there were concerns about cuts being made part-way through the year.
‘Councils cannot plan ahead or look at priorities, they have to just cut what’s available. Local government has been told to cut some of those budgets that are directly related to areas of greatest need, such as the Working Neighbourhood Funds and housing market renewal. These are areas that have special problems.’
Betts said that, if councils were being forced to make cuts, they would have to be given greater control of their finances. He acknowledged that ‘ideas of finance reform seem more attractive in opposition than in government’ but added there was a consensus for localism in Westminster. He also pointed to cross-party support from local government for finance reform.
‘It is a nonsense that we have a council tax banding system that relates to values of property from 1991,’ he said.
‘There will always be winners and losers when there is a change in taxation and there is always the temptation for the opposition to say that the losers will never stand for it.
‘Can we work across parties to get somewhere? In a select committee, we probably can. I think this is the area that a select committee, objectively looking at the evidence and working collectively, can be of real benefit.’
Betts was first elected to the Commons in 1992 and represents the Sheffield South East constituency.
