Lyons calls for more localism
Report calls for more power to local councils
Monday, 08, May 2006 12:00
Ministers must loosen their hold on local government if councils are to provide improved services and better value for money, a government-commissioned report finds.
Michael Lyons' independent review today argues that cutting nationally imposed targets for town halls, including the burden of regulation, and giving them greater powers over areas such as transport and skills could bring major benefits.
In particular, he argues that councils should have more power to "place-shape", by which he means allowing them to take more responsibility for a local area and the people who live there, and take action to promote the local economy.
Services would be better tailored to local needs, public services could be more coordinated across the area and local government could establish better relationships with providers to ensure they get better value for money, he says.
However, Sir Michael warns local government can only be more responsive if it is properly accountable – at the moment, councillors are "unrepresentative, poorly rewarded and under-valued", he warns.
"We have seen real improvements in local government performance and in public services in recent years, and this should be celebrated," he said.
"But at the same time the gravitational pull of government grants, targets and performance management has created an unhealthy situation where local councils are too often focused on the wishes of ministers and their departments rather than their own citizens' needs and preferences.
"Add to this a growing concern that centralisation brings its own confusions and rigidities and it is not difficult to see why there is a growing interest in redefining the relationship between central and local government to leave more room for local choice."
Sir Michael was tasked with looking into the funding of local government in 2004, but his remit has since expanded to look at the functions of local councils, and this is the main concern of today's report.
His conclusions on council tax as a means of funding town halls, due in December, are expected to be more explosive, although today's report hints at a move to give councils power over business rates.
Local Government Association chairman Sandy Bruce-Lockhart welcomed the report, saying it provided a "clear and evidence-based case for localism and for devolution to local authorities".
"Councils are certainly ready to take on greater responsibilities and use them to give people far greater say over the decisions that affect the places they live in," he said.
Shadow local government spokeswoman Caroline Spelman also welcomed the report's emphasis on giving more say to local communities, strengthening the role of councillors and cutting back on central government interference.
But she condemned Sir Michael's proposals to move council ward boundaries to ensure more "closely contested elections", saying: "Local boundaries should reflect local ties and the need for an equal share of the electorate, not the political control of the council."