The Case for a new Local Democratic Order

by Roger Warren Evans  1996

part of "Building a New Britain"
an alternative approach to devolution and local governance. 
Published by the City Region Campaign                                                 Page 4

Pages One - Two - Three - Four - Five - Six - Seven

Finance

The new regional assembly would be the recipient of a block-grant direct from Westminster. The Assembly would allocate resources, and be entitled to levy Council Tax within its boundaries.  It is inevitable, in our highly integrated society, that central Government should seek to "ring fence" certain aspects of that Block Grant, with the object of meeting UK-wide minimum standards and expectations.  The extent of the regional discretion to be accorded, within the framework of such a national grant system, would be the subject of legitimate continuing debate, and even Party-political differentiation.  Equally, it is recognised that, given the integrated character of the United Kingdom, a very high proportion of tax income will continue to be raised by the Westminster Government, and be subject to Westminster discretion in its allocation.  Within each region, the regional assembly would be the principal fiscal authority, with the power to levy taxes for all-Region purposes to supplement the Block Grant, and the obligation to raise taxes for any other unit of government (Neighbourhood, District, Province or other authorised public body) by way of the traditional precepting procedure.

Sources of tax income

We do not seek to enter the debate about the precise form which local taxation should take, nor do we pursue the arguments about local government borrowing, whether asset-backed or unsecured.   This is because the new tripartite system could operate satisfactorily with a range of different taxation solutions, and their details are not germane to our case.  These matters all raise important questions about the long-term financial stability of the nation state as a whole, and should be determined elsewhere.  We rest on four principles, namely -

That it would be for Westminster Government to decide the scope for regional assembly discretion in the disposition of the Block Grant;

That where discretion were accorded, the Regional Assembly should be responsible for the exercise of that discretion;

That whereas some borrowing constraints are likely to remain necessary, local government should be free to raise funds by way of additional local taxation for projects considered to be in the local interest, however defined; and

That the introduction of Provincial Government should not disturb the grant relationship between nation and region, which would remain the primary UK-wide redistributive funding system.

Advisory Boundary Commission

The principal task of the Boundary Commission, following enactment of the paving legislation and subject to final Parliamentary approval, would be to determine the boundaries of the regional authorities for England, Scotland and Wales; Northern Ireland would necessarily be the subject of special considerations, in the light of intervening political developments.  The same Commission should be asked to recommend neighbourhood boundaries, to ensure that these Councils could be launched contemporaneously with the other reforms, and not allowed to lag behind. Ot would however be for the new regional assemblies to determine those boundaries, during a period of "shadow administration".

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