Wednesday, July 18, 2007

'Let councils decide on tax and transport'

Ahead of the expected publication of the Sub National Review by the Treasury, the Local Government Association is calling for powers to be devolved to councils, or groups of councils, over taxation, transport, infrastructure, planning, economic development and skills in order to boost economic growth.The Local Government Association, a cross party organisation which represents councils in England, is calling for:Devolution of powers and funding for partnerships to provide local solutions to the transport, housing and planning, welfare and skills and economic development needs of their areas Devolution of new powers and funding to councils to recognise their key role in providing the conditions for local economic prosperity and growthDecisions to be made by councils working together with partners at the level of a town or city or county but not a centrally imposed modelRegional bodies such as Regional Development Agencies and Regional Planning Bodies to be genuinely strategic and for regional economic, planning and housing strategies to be mergedChairman of the Local Government Association, Sir Simon Milton, said:'The sub national review represents a real opportunity for Ministers to hand down powers from Whitehall back to locally accountable people to make the right decisions, in the right time and in the right place.'Central government keeps town and cities as clients. It is time to set them free. Decisions on transport, planning, regeneration and employment must be devolved to the level where people actually live their lives, raise their families and earn their living.'Despite the UK experiencing an unprecedented period of growth and stability, British productivity is below the average of G7 countries, lagging behind the US, France and Germany. English cities, with the exception of London, are not even represented in Europe's wealthiest thirty urban centres. If England's cities are to close the gap with other countries, let alone with London, their productivity and competitiveness need to stride forwards.'With greater devolution on taxation and clear powers over transport, infrastructure, planning, economic development and skills, overseas cities have managed to develop local economies that benefits not just the city, but pulls up the whole region. Whitehall should learn from their experience and give similar powers to English areas.'Politicians of all parties recognise that what distinguishes England's local economies from successful places elsewhere is our uniquely centralised system of decision-making and funding. What is needed is a clear devolution of power to make local decisions and put in place local solutions, and to invest in transformation for growth.'England's cities and shires are ambitious to take real local ownership of their economic destiny. Each place, city, county, town is different. All have their own unique challenges. 'In the light of the evidence, economic devolution now seems to both necessary and unavoidable. The government has created for itself an unmissable opportunity to bring about this decade's decisive economic transformation.'

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