NLGN reaction to financial settlement for local authorities

November 29, 2006

Reacting to the Government’s 2007/08 financial settlement for local authorities in England, NLGN Director Chris Leslie said:

“The inevitable tabloid scaremongering over local government grants shows how important it is for Michael Lyons to offer a sustainable solution for council tax in his forthcoming report.

The debate should not centre around whether to praise or bury council tax, but how local government finance can become fair and progressive. The solution lies with gradually assigning revenues currently held by Whitehall to a local level.

A residential property tax must remain a cornerstone of local finance. However, revaluation should occur now and be regularly reviewed on a fixed term basis to take the issue out of party politics.

Widening Bands A and H to create two additional bands and reforming council tax benefit are also crucial to making council tax fairer.

Political leadership is also required. Opposition parties should refrain from peddling scare stories and work towards a general consensus, whilst Government should not duck the opportunity of the Lyons report to spark a national debate on the future of local government finance”.

Chris Leslie is available for comment.

Media enquiries to James Hulme on 020 7357 0116 or james.hulme@nlgn.org.uk

Notes for Editors:

1. The New Local Government Network (NLGN) is an independent think tank, seeking to transform public services, revitalise local political leadership and empower local communities.


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