Devolution in England
With the Government handing greater economic freedom to Scotland and Wales, the Communities and Local Government Committee urges Ministers and general election manifesto writers to show the same enthusiasm for devolution elsewhere in the UK - by allowing local communities in England to take greater control over how money is raised and spent in their areas. The Committee calls for the transfer of a range of tax raising powers to local authorities, including business rates, stamp duty, council tax and other smaller taxes and charges, along with greater flexibility to borrow for investment. Releasing groups of authorities in England - centred on large city and county regions - from the fiscal grip of Whitehall could re-energise local democracy, boost England's economic performance and lead to more balanced growth across the country. The Government should develop a framework for devolution. Significant fiscal powers may go to only a few areas to begin with. But the rest of local government should not be left behind. The Committee argues that all local authorities in England should gain decentralised powers over spending and public services, and existing combined authorities should be able to take on a greater range of planning, housing and regeneration powers. Authorities taking on significant devolution will need to cover recognisable economic areas. No single governance model is recommended, but authorities should be transparent and publicly accountable. They should also be able to demonstrate fiscal competence and have clear and costed plans in place for their enhanced powers.