Localis, an independent think-tank, released a report today titled “Biting the Bullet: Funding Local Government in this Parliament and Beyond.” The report addresses the pressing financial challenges facing local governments in England and provides actionable recommendations for reform in the future.
In the aftermath of the recent Autumn Budget, which provided only modest increases in funding, the report emphasizes the need for significant long-term solutions in the upcoming Comprehensive Spending Review to ensure sustainable provision of local services.
According to the report, the government must show political courage and expend political capital in driving urgent reforms to the local government finance system. The report highlights increased costs in three crucial areas – temporary accommodation, special educational needs and disabilities (SEND), and adult social care – and stresses the need for far-reaching fiscal action.
The report outlines various pathways for reform, including updating the central government grant allocation formula, devolving revenue-raising powers, and reforming business rates. It also proposes options such as revaluing council tax valuation levels and implementing a land value tax to provide a stable revenue source for local government.
Sandy Forsyth, lead researcher at Localis, stated: “Local government plays a critical role in delivering essential services, yet it remains underfunded amid rising challenges. This report urges Treasury policymakers involved in preparing the Comprehensive Spending Review to adopt a bold and pragmatic approach to local public financial reform, ensuring that local authorities can meet the needs of their communities.”
Jonathan Werran, chief executive of Localis, added: “Fixing a broken system will require political choices and the expenditure of political capital – there will be winners and losers. However, as our report highlights, there is much in the wider arsenal of fiscal policy to draw on for a reformed local taxation system that is more efficient, fairer and sustainable.”
For press enquiries, please contact Nuala Cudmore, Communications Manager at Localis. An advance copy of the report is available for download on the Localis website.
About Localis:
Localis is an independent think-tank dedicated to issues related to politics, public service reform, and localism. They conduct innovative research, hold events, and facilitate a network of members to challenge the current governance system in the UK.
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.