CIPFA and LGA to launch local government finance commission

23 Jan 14
CIPFA and the Local Government Association have today announced their intention to create of an independent commission to examine the future of local government finance.

By Richard Johnstone | 23 January 2014

CIPFA and the Local Government Association have today announced their intention to create an independent commission to examine the future of local government finance.

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The commission will examine how to create fair funding of local government both through direct revenue raising and the distribution of resources, as well as the allocation of resources at local level. It will also look at the commissioning and provision of services at a local level and the system of local accountability for tax and spend decisions. 

Full details of the commission, including its terms of reference, members and chair will be announced shortly.

CIPFA chief executive Rob Whiteman said the institute had argued for some time that the current funding mechanisms for local government had been found wanting in a number of ways. 

‘It’s clear that we need to eliminate the uncertainty of an annual hand-to-mouth settlement when unexpected marginal changes mean a real difference to frontline services,’ he said.

‘The independent commission will produce impartial, balanced advice for both the government and the opposition on how best to ensure that funding system for local government can move towards a settlement that is fair, locally accountable and sustainable in the long term.’

LGA chair Sir Merrick Cockell added that the commission would examine how to secure economic growth and investment in infrastructure, including housing, as well as how to integrate the health and social care systems.

‘In the coming months we will be working hard to project forward and articulate what we want from any new government in order to transform local government,’ he said.

‘We hope to put a proposal to whoever forms the next government, which is a practical and supported basis for making our financing understandable and transparent not only to us but also to our residents.’

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