Labour council leaders have stated that pooling public service budgets along with a new settlement between national and local government is needed to restore authorities’ finances.
This vision is detailed in a paper written by seven council leaders, who have set out a roadmap for how a Labour government, if elected, could rebuild public services and local democracy.
The paper, which was published today (26 September), argued that given the funding constraints of the sector following years of austerity, Labour Party leader Sir Keir Starmer’s government will need to focus on making better use of existing money to deliver change.
The party should adopt the principles of a “Total Place” approach, the paper suggested, which was a policy initiative launched by the Labour government in 2009. This would mean “more ambitious pooling of public service budgets and joint planning”, which would allow shared risk of investment in community-led prevention.
Therefore, the proposals prioritise early intervention and prevention bringing an end to what Starmer calls “sticking-plaster politics”.
New settlement call
The paper also stated that a new settlement between national and local government should be implemented, which would clarify their respective roles and embed long-term funding stability.
“A new settlement would involve a guarantee of the political, administrative and financial independence of local government, enshrined in legislation,” the report said.
“In the immediate term, the first spending review of the next parliament should give councils clarity of funding, informed by local needs, over three to five years. This would provide much-needed stability and support to enable longer-term planning and investment in community-led prevention.”
The paper was co-authored by Kaya Comer-Schwartz, leader of Islington Council; Bev Craig, leader of Manchester City Council; Tracey Dixon, leader of South Tyneside Council; Georgia Gould, leader of Camden Council; Denise Jeffrey, leader of Wakefield Council; Peter Mason, leader of Ealing Council; and Kieron Williams, leader of Southwark Council.
Other proposals in the paper include giving councils stronger powers to respond to communities’ priorities, making devolution a focus, and putting people in the centre of service design through a new Community Impact Duty.
Commenting on the paper, Craig said: “A Labour government would inherit public services in crisis, yet from day one it will need to demonstrate a different way of doing government and empowering communities. Traditional top-down decision-making is hoarding too much power at the centre, and change will need to come from the grassroots up.”
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