Local Government and Public Involvement in Health Bill

I welcome this very important Bill, which marks a significant shift in the balance of power from central Government to local government. That is hugely important in terms of the way that our people look at government, both local and central. The Bill is clearly only the first part of the changes that have to be made in the relationship between central and local government. The second will come with the publication of Sir Michael Lyons’ report and the Government’s response to it, and the comprehensive spending review will also have a massive part to play. It is right that that should happen, because this is about governance, administration and the delivery of public services; it is not, at the moment, about the quantum of those public services. However, the two are intertwined: we cannot talk about governance without referring to the resources given to local authorities—and, indeed, vice versa. If the resources are to match the Government’s aspirations in the Bill, Sir Michael Lyons must address a number of issues in his report, including the ability to raise money from the council tax or its successor—if a successor is indeed proposed. Some 90 per cent. of my authority’s houses are in band A or B, which clearly reflects the nature of the borough’s economy. Other councils have few, if any, houses in those bands, which reflects their ability to raise money and the economic activity within those areas. That point has to be taken account of in the way that the council tax is raised. However, local authorities’ ability to raise money from other sources must also be taken into account. I read recently in the Evening Standard that Westminster city council can raise £25 million from parking charges alone. Other London boroughs can raise only £1 million, and some even less. If the way in which central Government grant is calculated cannot take such differences into account, we will be unable to achieve a fair system for local government.