It is not the first time that local government minister, John Healey, has complained that councils are not using their income-generating powers – and it certainly will not be his last word on the subject. Indeed, you can expect him and his successors – of whatever political hue – to be banging the same drum for years to come. With tight budget rounds and an end to above-inflation grant settlements, they have little alternative. He was at it again last week, at the IPPR/LGA conference, when he complained that too few councils used their charging powers, 90% of LSPs never used their wellbeing powers, only 20% of councils were charging to their full potential, and only 60% had used prudential borrowing powers. And he mentioned that at an earlier conference, one chief executive in the audience had welcomed ministerial ideas for new funding tools, as these would ‘help raise revenue and fund infrastructure'. Mr Healey said he checked up the council afterwards – memo to chief executive: don't ask ministers questions at conferences – and ‘it doesn't appear to trade commercially, hasn't borrowed in the three years of the new prudential system, and has seen its charging income drop by one-quarter over the last four years'. It's a fair point. But, unfortunately, it fails to take into account political realities. Councils and Mr Healey may view such extra income as ‘charges', but the public tend to see them as ‘taxes', and taxes, right now, are a taboo subject. The proposed recycling charge, for example, meets all of Mr Healey's criterion and doubtless, has his support, being both a source of income and a means of achieving social goals. But Number 10 swiftly drew back from it when the Opposition began dubbing it ‘a bin tax'. Other suggested charges, anything from parking and congestion charging to dealing with wasp nests, will inevitably also be dubbed taxes. And, if councils increase charges – such as for leisure centres or parking – above inflation, they will inevitably pay the price at the next polls. Michael Burton Editor, The MJ
