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Call to devolve power to councils Hand control to councils, say MPs
(about 10 hours later)
A cross-party group of senior MPs and peers is calling for a genuine devolution of power from Whitehall to local government. Councils should have more freedom to raise their own money and decide how to spend it, says a cross-party group of MPs and peers.
The Chamberlain Group says councils should have greater financial freedom and have their constitutional role monitored and protected by Parliament. Its report says councils should be less dependent on government grants and be allowed to tap into other types of revenue - like vehicle excise duty.
This would reinvigorate democracy and boost political engagement, it says. The government also needs to accept that devolution means services would be different from area to area.
But it should only intervene as a "last resort", the report says.
Only about 25% of money spent by councils is raised locally through council tax and charges such as housing rents, the rest comes from government grants raised by national taxes and business rates.
More localism
The report is the result of two years' work by the Chamberlain Group - an informal grouping of peers and MPs - including former local government ministers from Labour and Conservative governments - named after the pioneering Victorian Mayor Joseph Chamberlain.
BBC correspondent John Andrew said while Labour, the Tories and the Lib Dems were all signed up to more localism, the report made clear that, as one of the most centralised states in Europe, the UK still a long way to go.
To counter public cynicism about political institutions and low levels of turnout in elections, we have to find new ways to engage citizens in the political process Nick RaynsfordFormer local government minister
The Chamberlain Group report says fewer grants should be "ring fenced" by local government and local authorities should have "significantly more financial freedom" to make their own decisions about spending local tax revenue.
Instead they could be assigned a portion of income tax, or other types of national revenue like vehicle excise duty, it says.
And major projects could be funded by allowing councils to issue bonds - London Mayor Ken Livingstone has been allowed to issue bonds to help fund investment in the city's transport network.
Consult more
The report also calls for a joint committee to report annually on how devolution is working, and for governments to consult local leaders more, when formulating national policy.
The report comes a week before the Queen's Speech and the publication of a Constitutional Reform Bill.The report comes a week before the Queen's Speech and the publication of a Constitutional Reform Bill.
It has the backing of several local government think-tanks and the Local Government Association, which represents the interests of local authorities.It has the backing of several local government think-tanks and the Local Government Association, which represents the interests of local authorities.
Last resort 'Rhetoric challenged'
The report sets out 10 principles including letting councils make more decisions about finance and local tax revenue.
It suggests central government should accept the need for less ring-fencing of grants so councils can spend according to local people's priorities.
It also wants the creation of a joint Lords and Commons committee to report on progress in devolving powers from Whitehall.
To counter public cynicism about political institutions... we have to find new ways to engage citizens Nick Raynsford, former Labour local government minister
Central government should intervene at local level only as a last resort, it suggests, and it must accept that services may vary from council to council.
Local leaders should have some input into forming national policy, the report says.
It goes on to recommend that voluntary groups are more involved in improving public services.
The report is the result of two years' work by the Chamberlain Group, named after the pioneering Victorian Mayor Joseph Chamberlain.
Former Labour local government minister Nick Raynsford said: "To counter public cynicism about political institutions and low levels of turnout in elections, we have to find new ways to engage citizens in the political process.Former Labour local government minister Nick Raynsford said: "To counter public cynicism about political institutions and low levels of turnout in elections, we have to find new ways to engage citizens in the political process.
"More devolution of power and the active involvement of local communities in decision-making are essential if we are to rebuild confidence in our democracy locally and nationally.""More devolution of power and the active involvement of local communities in decision-making are essential if we are to rebuild confidence in our democracy locally and nationally."
Former Conservative local government minister David Curry said government closest to the people was always left out in debates about constitutional change.Former Conservative local government minister David Curry said government closest to the people was always left out in debates about constitutional change.
He said the report "challenges both the government and opposition parties to translate their rhetoric about de-centralisation into firm measures to deliver it".