Localism: the first big test?

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The battlelines over localism are being formed in Scotland. What happens there directly affects the debate over decentralisation in England.

I haven’t been following this closely but my understanding is this: the SNP, which over time plan to replace council tax with a system of local income tax, have worked out a deal with local government whereby local authorities agree to freeze council tax in exchange for a very significant reduction in ringfencing by the Scottish executive. Labour are now hopping up and down making scary predictions about how this will hurt vulnerable people.

In a sense, they both have a point. Local government in Scotland as well as England has very few revenue raising powers and any squeeze will necessitates cuts being made somewhere, and it would not be surprising if the quietest voices had their funding cut the most. But Labour’s solution to this problem is simply to clobber local government with red tape, not to give it more freedom.

There’s another factor that needs to be considered as well: electoral reform in local government last year and the huge numbers of balanced councils it has produced will mean that this year’s budgets will be under more intense scrutiny than ever before. If Labour wishes to defend the vulnerable, by and large they will have their chance, but in the council chamber not Holyrood.

On balance then, I side with the SNP here. Sadly, if Labour are like this in opposition, it doesn’t bode well for getting localism out of them in government either.

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