Devolve prosperity powers

Putting more power in the hands of councils would help the UK to be better prepared for economic recovery, new research suggests. Analysis by the LGA has revealed stark differences between how town halls across the world have been able to respond to the global recession. While local authorities in the UK have been doing all they can to support people and businesses, those in most comparable countries have been free to go much further.  

 Examples include:

• in Spain, local authorities are at the heart of a €8bn financial injection to stimulate the economy: more than 17,000 projects have helped to create 20,000 jobs
• in the US, Seattle has provided £315m to boost businesses and create jobs in the city
• Toronto, Canada, has provided interest free loans to help tenants struggling to pay their rent

The LGA says Britain would be better prepared for economic recovery if there was greater devolution in welfare, skills, housing (pictured) and economic development. British productivity overall is lagging behind countries such as the US, France and Germany, all of which have more decentralised systems of local government. Cllr Richard Kemp, deputy chair of the LGA, said greater powers for councils would lead to greater prosperity. “It is essential that central government allows decisions that affect people’s lives to be taken as close to them as possible.” The findings are detailed in ‘Global slowdown, local solutions: international lessons’ which can be seen downloaded at www.lga.gov.uk/publications