Local government across the western world has been able to react to the COVID-19 crisis with greater powers and autonomy than councils in the UK, according to a new report from the think-tank Localis, commissioned by the LGA.
It explores how local authorities in Germany, Switzerland and Holland can access a diverse range of revenue sources and are able to adjust and introduce local levies in consultation with their residents and businesses.
In comparison, English councils have become increasingly dependent on revenue from council tax and business rates, with government grant funding having reduced by almost £15 billion over the past decade.
The LGA wants to work with government on how its forthcoming Devolution and Local Recovery White Paper can explore options for greater fiscal freedom for local communities, such as raising local tourist or e-commerce levies, and having greater control over how national taxation is spent locally.
Cllr Kevin Bentley, Chairman of the LGA’s People and Places Board, said: “England is an outlier when it comes to fiscal devolution. As we look ahead towards the long process of economic and social recovery, this gap in local power and autonomy across England risks seeing our communities fall ever further behind.
“Councils want to work with the Government on how local communities can have the freedoms and flexibilities to play a lead role in the nation’s economic recovery and better connect local leaders to decisions made about how money is spent and raised for the benefit of their communities.”
