Councils pay the price as Darling bows to business
REPORTS condemning the Government for shackling power- starved local authorities arrive with a depressing frequency in this job.
Opposition parties and think- tanks all make the same criticism ââ¬â councils are stripped of any meaningful muscle and ministerial pledges to restore it are a mirage.
So, what makes the latest study so notable is not its line of attack ââ¬â ââ¬Åmost disappointingââ¬?, ââ¬Ålacking visionââ¬?, ââ¬Åhobblingââ¬? ââ¬â but the people firing the shots.
Because, this time, it is a Labour-dominated select committee, led by a normally ultra-loyal backbencher ââ¬â so the Government must be behaving badly.
Worse, this time local authorities are being betrayed over the funding mechanism that was supposed to throw a lifeline to the likes of the axed Merseytram scheme.
Last October, Chancellor Alistair Darling announced that town halls would be able to levy a ââ¬Åsupplementary business rateââ¬?, to raise tens of millions of pounds for key projects.
The idea is aimed specifically at accelerating transport schemes such as Merseytram, which appeared doomed in 2005 when the Government pulled the plug on ã238m of funding.
But, in the face of protests from the CBI and the British Chambers of Commerce, Mr Darling pledged ââ¬Åfour levels of protection for businessââ¬?.
Most notably, the rate will be limited to 2p in the ã ââ¬â half the figure recommended in an independent study.
Firms with a rateable value below ã50,000 will be exempt, and a ballot required if the supplement is funding more than a third of the cost of a project.
Now the communities and local government committee has delivered its verdict ââ¬â and it pulls no punches.
The committee is clearly furious that its own recommendations ââ¬â no compulsory ballots, no cap on the SBR rate, exemptions to be decided by town halls ââ¬â were dumped.
Chairwoman Phyllis Starkey said: ââ¬ÅIt is in this failure to trust local authorities to take effective decisions, in partnership with local business, about the levying and use of local funds that the Government demonstrates its lack of vision.
ââ¬ÅWe are dismayed that it proposes to hobble local authoritiesââ¬â¢ ability to raise sums which would enable them to make a meaningful contribution to the economic development of their area.ââ¬?
Remember, this is the verdict of a Labour-dominated committee. Once again, ministers bow down to business ââ¬â and local councils pay the price.
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Rob Merrick - Rob is the political correspondent for the Liverpool Daily Post, based in Westminster
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