13 December 2010
The Localism Bill will be laid before Parliament this afternoon, paving the way for a radical shift in power from Whitehall to councils in England.
The legislation contains a package of reforms, including new powers for local authorities. As well being given a general power of competence, councils will be able to grant discretionary business rate discounts and cancel certain backdated rates, such as port taxes.
They will also be able to decide allocation and tenure of social housing, while homelessness legislation will be reformed to allow councils to find homeless families private rented accommodation. The Housing Revenue Account subsidy system will be scrapped.
Meanwhile, planning laws are to be reformed, with regional strategies swept away and residents given powers to grant planning permission if a local majority are in favour.
Local Government Secretary Eric Prickles said the Bill marked a ‘groundbreaking’ shift in power to councils and communities.
‘For too long, everything has been controlled from the centre – and look where it’s got us. Central government has kept local government on a tight leash, strangling the life out of councils in the belief that bureaucrats know best.
‘By getting out of the way and letting councils and communities run their own affairs we can restore civic pride, democratic accountability and economic growth – and build a stronger, fairer Britain.’
The wide-ranging Bill also contains moves to boost pay accountability, requiring all councils and fire and rescue services to publish a policy statement on chief executive pay.
Twelve cities are to be given powers to create directly elected mayors. They include Birmingham, Bristol, Coventry, Leeds and Liverpool.
Communities will also be given the right to veto council tax
rises, powers to take over services previously run by the state and the right
to hold a local referendum on any local issue. Bin tax laws are to be repealed.
Local government minister Bob Neill told Public Finance that the Bill would usher in a ‘can-do’ era for councils.
Alongside the Bill, Deputy Prime Minister Nick Clegg and decentralisation minister Greg Clark issued a guide setting out six essentials actions the coalition would have take in order to achieve its Big Society goal of bringing power closer to people.
These included increasing local control of public finances so that more decisions about how public money is raised and spent can be taken within communities.
