Councils should take over resource equalisation from the Government, Essex CC has claimed. The plan is one of several measures put forward by the council in a new pamphlet, He who pays the piper. According to the council, the current funding system is damaging democracy, and hampering councils' attempts at place shaping. The county suggests councils take over resource equalisation – the scheme whereby councils with low incomes are subsidised by those with more earnings – from the Government. Other proposals outlined in the document include relocalisation of business rates, local sales and income taxes, and a revised property tax, which would cut the cost of current council tax. Essex leader, Lord Hanningfield, claimed the unpopularity of council tax was now harming the sector. ‘There is a clear need to review the way local government is funded and to strengthen the relationship between councils, citizens and services. Lyons ducked the issue. Essex is not doing so,' he added. The pamphlet is due to be launched in the autumn.
