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Local government pledges are at the forefront of the major parties' general election manifestos, with plans afoot for greater community involvement in delivering services, a cull of central targets and council tax limits. As Nick Clegg's popularity soars, the Liberal Democrats pledged to scrap council tax and replace it with a local income tax (LIT). With the Lib Dems now a strong contender to form a coalition government in the event of a hung parliament, one senior town hall insider suggested a possible LIT was ‘very much on the table'. But other local government sources said the Lib Dems in coalition would be unlikely to exercise demands to scrap council tax while the UK's economic recovery remained fragile. ‘Overhauling such a fundamental tax, and replacing it with a new levy on local incomes, would be a risky venture at this point in the economic recovery. So, if the Lib Dems do form part of the post-election government, the feeling is they could use the flagship LIT pledge to ‘barter' deals on other key, post-election issues, such as health sector or education reform,' one insider told The MJ. But other key Lib Dem promises could be supported by Labour or the Conservatives, including plans to scrap or reduce national performance targets. Both Labour and the Tories have pledged a reduction in centrally-imposed targets, while Mr Clegg would abolish them. Navprit Rai, Lib Dem local government adviser, said: ‘Too often, people's opinions about what happens in their area are ignored. Taxes we pay locally disappear into the Treasury… and the way public services are provided reflects what central government wants. ‘We will cut back central government and all the stifling targets it sets, to make sure local taxes are spent locally, and give people a real say [over local services].' Just one party – the Conservatives – has pledged a ‘power of general competence', allowing town halls to undertake any action on behalf of their locality which is not prohibited by law. Senior LGA officials are reportedly delighted with the proposal, which they helped to frame. But it is not clear whether the other parties would support such wholesale devolution. Plans for direct resident involvement in services are causing most immediate interest. The Conservatives last week outlined plans to allow residents to block excessive council tax rises, and trigger referenda on key local issues. Labour, meanwhile, said residents could trigger takeovers of failing police forces and schools. ‘Citizen empowerment is high on the agenda, but we await the detail of how such plans would work,' The MJ's source said.

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WHITEHALL

LIT 'leverage' in hung parliament

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