NLGN response to Budget 2007

March 21, 2007

Responding to the today’s Budget Statement, Chris Leslie, Director, New Local Government Network said:

“All eyes now turn to this summer’s Comprehensive Spending Review for the full Government response to Michael Lyons’ recommendations on local government finance reform, as promised in the Budget documents. The Chancellor has indicated a willingness to consider the supplementary business rate for councils, opening promising opportunities for local capital infrastructure investment. The Budget also announced that the Government is willing to consider council tax reform – and assigning portions of income tax revenue to substitute for grant funding – as recommended by both Michael Lyons and the New Local Government Network.“It is unsurprising that the Chancellor is not attracted by a tourist tax option, nor that capping powers have been retained. However, we welcome the Budget commitment to set targets for the reduction of centrally ring-fenced grant funding to councils and to beef up the ‘LABGI’ business growth incentive for local authorities.“Council Tax Benefit reform is clearly necessary and the Budget has committed to further thinking on this – a proposal with cost implications that will need considering.“NLGN will be stepping up the pressure to ensure that both the CSR and the Sub National Review deliver strong reforms to enhance devolution and local democracy.”


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