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Plans for how a future Conservative government would fund and organise local authorities have been revealed to LocalGov. Proposals include plans for a grant commission to allocate local government funding, the reintroduction of local government bonds and a ‘power of general competence'. Plans to boost development would include letting councils keep the council tax on new homes for 10-12 years, without losing any revenue support grant. A similar scheme would exist for business rates on new firms attracted into the area. Few details have emerged on how a new Tory government would resolve the thorny issue of local government finance, aside from the grant commission. The party has revealed it would keep council tax for at least two years, and retain the current system of floors and ceilings. The door to re-organisation has been left open, with no moves to actively reshuffle local government but insiders say they would not ‘stand in the way' of local demand for it. The policies are being rolled out by shadow communities secretary Eric Pickles, and shadow local government minister Bob Neill in a series of meetings with Conservative council leaders. The proposals have been broadly well received so far, with one Tory insider claiming: ‘There is nothing in there I disagree with'. However, another source told The MJ there was ‘scant detail' and it was not particularly radical. Stephen Greenhalgh, head of the Conservative Councils Innovation Unit, told The MJ: ‘This is only a green paper, not the final say.' Cllr Greenhalgh, who is also the leader of Hammersmith and Fulham LBC, said the Innovation Unit was preparing its response. The Tory plans at a glance * A grants commission would be set up to create the criteria for funding formula * New housing developments would keep council tax without losing revenue support grant for 10-12 years * Business rates for new firms would also be kept for 10-12 years * Local government bonds would be allowed * Council tax would stay for at least two years, with floors and ceilings retained * No active reorganisation, but they would not stand in the way whre there is local demand * A power of general competence and ultra vires will go * A relationship between local government and Westminster – with a ‘parity of esteem' * RDAs and Regional assemblies would be scrapped * CAA would go and the inspection regime would shrink significantly * Standards Board would be scrapped

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WHITEHALL

Tories reveal blueprint to govern town halls

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