Tuesday, 28 May 2013

2011-14 CSR: Central control continues

From the Centre for Cities blogpost on central and local government spending power relations - a reminder that local government

Last month at Holborn general Committee, former Camden Labour leader Phil Turner charted recalled  the shift from local government control over its own expenditure decisively changed during the Thatcher era, when the government looked to curtail the powers of local councils via the Rates Act.

He read out a statement (left) by the then Chief Executive to him as leader, warning of the "fundamental change in the relationship between central and local government" by the ratification of the Bill.

The current state of affairs, and how it is getting worse, is charted by the Centre for Cities' Zach Wilcox in a post last week - with this helpful graphic showing how the Chancellor's CSR has made things the central-local balance even more lopsided.

Wilcox argues:

Whitehall holds much control over local authorities’ finances, both in setting the budgets and how authorities can use their funds. On the whole, central government determines the budgets for 60 per cent of local authority spending. With the remaining 40 per cent local government raises, Whitehall sets rules and regulations around the amount raised and how it can be used (see figure below):

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