Devolving public spending to local and strategic authorities “must be part of a roadmap to a sustainable financial model for local government”, the LGA has told Peers.
Giving evidence to the House of Lords’ Economic Affairs Committee as part of its inquiry into fiscal devolution, Cllr Eamonn O’Brien, LGA Chair, said this should include the ability to raise and retain resources locally, define local spending priorities and lead public services that reflect local needs.
Fiscal devolution, he told the committee, is “a possible solution to a range of issues facing local government, the first of which is clearly the financial challenge and difficulties facing many, many councils”.
It can also “unlock not just economic growth, but good economic growth, inclusive economic growth… because it puts local councils and strategic authorities in a position to more adequately address local needs, deliver on local priorities and exploit local opportunities”, he said.
Cllr O’Brien gave evidence alongside colleagues from the Local Councils Network and the County Councils Network.
The session followed the announcement over the summer of new spending powers for mayors and publication of the Cabinet statement on Rewiring the State.
This sets out plans for a new model of government and a radical shift in powers and resources “so that decisions can be made locally, and people can shape their own areas and hold government – at all levels – to account”.