The Government could achieve significant success with its Levelling Up agenda with simple changes like ending councils pitching against each other for funds, business rates reforms and implementing social care reforms, according to a new manifesto drawn up by a cross-party group of 47 urban local authorities.
SIGOMA, a campaigning network representing 47 councils with 14 million residents in towns and cities from Plymouth to North Tyneside, said the Government can do much more to support local government and ensure quality public services and fair distribution of resources, setting out the key changes to ensure funding is better used and distributed.
The manifesto is launched as political parties’ canvas for the upcoming local elections in England, with voters heading to the polls on Thursday 4 May.
Since 2013, there has been a shift in the way local authorities are financed. The structures that support a fair distribution of funds raised through taxation have been replaced by ones that tend to reward high value housing stock and a large and thriving business rate base.
As a result, the proportion of funding from Government by grants has reduced while the amount raised from local taxes has had to increased. This has benefited the wealthiest areas who rely less on grant funding and who raise more from council tax, business rates and other growth based local funding sources. Councils now receive £4,580 million less in grant and retained rates than is raised through the business rate system. In 2013-14, they received £4,930 million more – this is a reversal of £9,510 million.
SIGOMA has identified several areas that require significant Government reform in order to help councils that have seen Whitehall funding fall from 55 per cent of council’s core spending power in 2013-14 to just 37 per cent per cent in 2023-24.
Chair of SIGOMA, Cllr Sir Stephen Houghton said: “As political parties step up their canvassing ahead of the local elections this week, households on every street are crying out for a Government and local representatives that can provide a promising vision for the future.
“Today’s announcement lays out a clear Manifesto that will help support councils across the country that are on their knees after 13 years of continuous cuts and provide them with the financial support to invest in their local communities and help generate long-term prosperity. This Manifesto is truly Levelling Up in action.”
