Saving Local Government Finance Summit: Need for “Significant Reform
More than 60 leading local government figures and influential academics came together for the Saving Local Government Finance Summit to reflect on the legislative commitments in the King’s Speech and to deliberate on how the Government plans to carry out its promises for local government, including devolution and planning reform.
Despite optimism in the air, the consensus at the summit was clear: without significant reforms in funding, particularly for social care, local councils cannot maximise their role in delivering the government’s Five Missions. While not in the King’s Speech for immediate legislative attention, reforming local government funding was considered most pressing, particularly to stem the flow of bankruptcies.
Reflecting on the King’s Speech, Dr Jonathan Carr-West, Chief Executive, LGIU, said:
“The Government’s early local government commitments are positive, and the sector welcomes multi-year funding settlements, the conclusion of competitive bid funding and a more collaborative approach from the new government. However, the elephant in the room is what’s not being said: local government funding reform. WIth half of all councils at risk of going bust in the next parliament, now is the time to provide sustainable funding and stem the flow of bankrupt boroughs.”
In reaction to the devolution commitments, Dr Carr-West, Chief Executive, LGIU, said:
“The regions must have a say in how devolution is rolled out with bespoke solutions available: what works for Cumbria may not for Chingford. And while much attention has been on the role of metro mayors, especially with the introduction of the new council of nations and regions, it is essential that central government listens to other democratically elected local leaders.
Underpinning any devolution roll-out is trust. Central government needs to trust its local counterpart to do its job. Devolution should also help councils win back the trust of the people they serve so that they can build consensus for difficult and contentious decisions that are increasingly necessary.”
On planning reform, Dr Carr-West said:
“The briefings before today have pulled in different directions. On the one hand, there were those saying the government will liberate councils, by streamlining the planning process, empowering and working together with local leaders to build new homes where local communities want them. On the other hand, there were those who claimed the government aimed to bind councils to unachievable targets imposed by the centre. As it is, the details we have now are still limited and we’ll need to see – and contribute to – how the plans develop. There is a huge opportunity here to open up planning and expand local growth.”
Specifically on social care, Dr Carr-West said:
“The funding of social care is a perennial thorn in the side for every government, central and local. This is an issue that demands a solution, and although there was no mention of legislative reform in the King’s Speech, the proposed Royal Commission leaves a vital opportunity to reconsider how social care is funded with local government, service providers, and service users as central to the consultation.”
