We could be self-sufficient

Published: 15 April, 2011

• WHILE we support the government’s work to drive down the deficit, we could do so much more to promote economic growth if the local government finance system was reformed.

Along with more than 200 local authorities across the country we could be self-sufficient, but the current system actually impedes economic growth and means we all have to join the queue for Treasury handouts.

While the government has made a start in addressing this, Westminster’s 33,000 businesses, for example, pay more than £1billion a year in rates but the council acts merely as the tax collector.

If councils were given a direct stake in the economic wellbeing of their area by retaining more business rates locally, they could work with businesses to create jobs, encourage investment and be more responsive to local needs. Business leaders often complain that there’s plenty of taxation but very little representation.

If done right, however, the changes that ministers are now considering to local government finance will not just replace one funding source with another it will bring about a fundamental change in the way councils work. 

CLLR BRIAN CONNELL
Cabinet Member for Business, Enterprise and Skills