Jonathan Carr-West, Chief Executive, LGiU said:
“This research supports a growing chorus of voices calling for reform of the local government finance system. A system that we know is fundamentally broken.
The fact that we still live in a country in which 98% of tax is determined by one person is out of date, out of touch and flawed. If you have a system where Councils are dependent on central funding, the money can’t follow and adapt to local changes quick enough.
Fiscal devolution, where councils have the power to drive funding locally, is the only way you can cope with economic flexibility on the ground.
Giving local authorities local power turns population growth into economic growth. Councils can cope with changing populations and changing demands, but they need to be given the tools to do it. The current system actively ties local government’s hands behind their backs.”