There will be a “real renaissance of local government” under the Labour party if it is elected at the next general election, Dame Meg Hillier has promised.
Speaking at Room151’s Local Authority Treasurers’ Investment Forum and Finance Directors’ Summit today (19 September), the chair of the Public Accounts Committee (PAC) alluded to what the Labour party would deliver if it were to win at the next general election.
Speaking to delegates she promised that there would be a real focus on devolution under a Labour government, but that there would also be an emphasis on local government funding.
She highlighted that “local government finance is a very tough gig at the moment”, with its funding being reduced over the last ten years and the ever-increasing demand for services.
“The diminution in your funding has meant that many of your finance systems aren’t up to scratch in terms of dealing with giving out money, and that is going to be a political priority in the manifesto, which is absolutely critical,” she said.
Hillier did warn though that after the general election finances will be “tight, tight, tight” and there will be “no land of milk and honey”.
However, when asked by delegates whether Labour will work on ensuring the sustainability of local government, she said: “I hope that under my party there will be a real renaissance of local government.”
‘Birmingham has rocked the whole of local government’
Speaking to delegates, Hillier highlighted the recent news of Birmingham’s issuance of a section 114 notice, with the government to intervene at the council.
She said: “Local government is facing a huge challenge, Birmingham’s s114 notice rocked the sector and it’s down frankly to political failure and ten years of not acknowledging a big problem.”
Hillier told attendees at the conference that this “big problem” is the lack of central government funding available for councils.
“The National Audit Office has reported that local authorities spending power on grants, council tax and business rates has fallen by 26% between 2010 and 2021 and that fall is largely due to the reduction in central government grants,” Hillier added.
She highlighted that there is a “real danger” that central government “downplay” the role that councils play, but in reality authorities “need to be celebrated”.
At the end of her address, Hillier added: “In the midst of all this doom and gloom, with the news about Birmingham, we need to celebrate local government and restore it to its rightful place in our national affairs.
“We need to push back when people want to chip away at it and expose the hypocrisy of those who attack its failings.”
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