Council leaders urge bold reforms to devolve, deregulate and decentralise powers from Whitehall

LGA news release - 26 October 2006

Ahead of the Local Government White Paper expected to be published later today (Thursday), council leaders have set out their bold new vision for how power should be removed from Whitehall and put into the hands of local people, voluntary organisations and local councils.

Key proposals that the Local Government Association is calling for include:

• Slashing 1,000 national targets and performance indicators to save taxpayers £2.5billion and free up front line staff
• Giving councils extra powers including over transport, infrastructure, planning, economic development and skills to boost local economic performance and regeneration
• A return of the local Business Rates with an inflation safeguard so councils have freedom in raising revenue and setting their budgets
• The power for local people to hold NHS chief executives, police chiefs and council leaders to account if they consistently perform poorly
• Greater ‘postcode choice’

Local authorities are responsible for a budget of £85billion, have 1.6million employees and 20,000 elected councillors.

Chairman of the Local Government Association, Sandy Bruce-Lockhart, said:-

“Our objectives are to improve public services, widening both access and choice, to ensure value for money making better use of the public’s taxes; and to create attractive, vibrant, prosperous, safe and friendly places where people are proud to live.

“There is, however, a further challenge. We see an erosion of democracy, a crisis of trust and a cynicism with politicians. We must give people back power and influence over their lives, their local services, and the future of the places where they live.

“Of all the major democracies and economies of the world, England is unique in the degree of central control exerted over public services and local government. This has wasted the public’s money. It has sapped the energy, enterprise and innovation of front line staff. It has denied local choice, and eroded local democracy itself.

“With greater devolution on taxation and clear powers over transport, infrastructure, planning, economic development and skills, cities such as Frankfurt, Milan, Madrid and Luxembourg have higher, faster growth than their equivalents in Britain. Giving these powers to cities in England would develop local economies that benefit not just that city, but pulls up the whole area.

“It is time for Whitehall to decentralise, devolve and deregulate to set people free of bureaucracy and improve the lives of millions of people.

“Local government itself could not be in better shape for this challenge. The Treasury has reported that councils lead the public sector in efficiency gains, making £158 million of savings every month. The Audit Commission reports that seven out of ten of the biggest local authorities are improving well or strongly.

“Not only have we got our house in order, but we in local government also have a vision which seeks to champion the cause of local people, to make a difference to their lives and respond to their needs, hopes and ambitions.

“We are also very clear that for this renaissance in local government to come about, we must set tough goals for our own sector. Local authorities must show that they do not want greater devolution from Westminster just for its own sake. They must persuade their communities that decentralisation is about allowing them to respond to the ambitions of the people who live and work there, devolve power further beyond the town hall and deliver ever more value for money. This also means that council leaders must accept that the buck stops with them when things go wrong.

“The time has come for audacious and deep-seated reform. Local government is determined to rise to the challenge of a more devolved system and we look forward to a White Paper that sets us down this road.”

ENDS