Local Government and Public Involvement in Health Bill

moved Amendment No. 246CA: 246CA: After Clause 238, insert the following new Clause— ““Independent Commission for Local Government Finance for England (1) There is to be a body corporate called the Independent Commission for Local Government Finance for England. (2) Schedule (The Independent Commission for Local Government Finance for England) (which makes provision for the Commission) has effect. The noble Lord said: This amendment proposes an independent commission for local government finance. We have not heard very much in Committee about the Lyons inquiry. The Minister will remember that in April there was an opposition debate and that Sir Michael Lyons has said that the present local government finance system for council tax was not broken but that it was discredited. We start with the problem that the current system lacks transparency, has little credibility on distribution and equalisation and often runs up to 10 years behind on population and demographic change. It is seen to be unfair by the public, who do not understand it. They feel that they have picked up a disproportionate share of national taxation, partly because of the burden of cost imposed through national legislation, policy and demands from central government. This leads to a lack of clear accountability about who is responsible for council tax rises. We know what happens every year—local government blame central government and central government say that it is up to the councils. Independent commissions exist in Australia and Denmark and work well there. I feel that such a commission would work well here. In Australia it deals with the issues of distribution and equalisation mentioned in my new schedule. It ensures the most up-to-date use of statistics on population and demographic change. How useful that would have been with the escalating immigration over the past half dozen years. But perhaps most importantly of all, it identifies and independently establishes the cost to local government of complying with national legislative change, policy and directives. An independent commission would be seen to be fair and independent. When we last discussed this in April the Minister was concerned that the commission could not be responsible for value for money issues, service improvement and local responsiveness. That is absolutely right. The greater accountability of knowing who was responsible would strengthen local accountability. I was grateful to the Minister for saying that she might consider whether some other body might do this. That was helpful. I know that the Audit Commission has been suggested. However, we need to be bold about this. We need to add that accountability for council tax and to localise it. Therefore, an independent commission, which was proposed for the Government’s consideration by Michael Lyons, would be the best way to proceed. I beg to move.