Title

A parliamentary select committee has hit out at the DCLG for failing to trust local government enough. The communities and local government select committee said the department also lacked vision for the future of local government finance. The committee first put out a report on supplementary business rates last summer. But now, it has said the Government's response was ‘a significant disappointment'. While the committee welcomed the Government's commitment to giving councils a place-shaping role, it said the ‘over-cautious' approach was hampering councils' abilities to encourage economic development. Committee chair, Dr Phyllis Starkey, said: ‘It is in this failure to trust local authorities to take effective decisions… that the Government demonstrates its lack of vision.' She added: ‘We are dismayed that it proposes to hobble local authorities' ability to raise sums which would enable them, in partnership with local business, to make a meaningful contribution to the economic development of their area.' However, local government minister, John Healey, has hit back. He claimed the department took a ‘balanced' approach to give councils the power to raise extra cash, without damaging businesses. ‘This is part of our plans to see local authorities play a stronger role in economic development,' he said. ‘The system proposed by the committee of unlimited and even multiple charges would significantly undermine safeguards, and create uncertainty for business ratepayers.' In its report last year, the committee urged the Government to allow rates to be varied locally, with no cap. It claimed this would allow councils a stronger role to building the identity of specific areas. The committee also called on the Government to give councils alternative powers to raise cash with local businesses for local investment.

Title

WHITEHALL

MPs slam DCLG's 'lack of vision' for councils

SUBSCRIBE TO CONTINUE READING