LGA and CIPFA set up independent commission on local government finance

An independent commission is to probe how a reformed local government finance could be used to deliver council services more effectively.

The Commission on Local Government Finance has been set up by the Local Government Association (LGA) and the Chartered Institute for Public Finance.

It will be chaired by Darra Singh, a partner in the government and public sector team at business consultant EY and a former chief executive of the London Borough of Ealing.

His recommendations will be used to try to influence whichever government wins next year’s general election.

The commission is expected to publish interim findings in the autumn and a final report in early 2015.

It will examine how the current system “stands in the way of the transformation needed to tackle real world problems” and explore how it could be reshaped to help to address: promoting economic growth and investment in infrastructure; ensuring sufficient housing is provided; integrating the health and social care systems; achieving a welfare benefits system that promotes work and protects the vulnerable; supporting families through early intervention.

Mr Singh said: “Previous commissions have looked at reforms to local government finance.

“But the challenges are now much more critical which means the work of the commission could not be more timely.”

The LGA’s Conservative chair Sir Merrick Cockell – who will be succeeded next month by Labour’s David Sparks – said work so far showed reform of local government finance was “central to developing new ways of delivering public services and growing local economies. 

“The purpose of the local government finance system is to help solve these real world problems. I am really looking forward to the independent commission’s ideas on how this could be done more effectively.”

Mark Smulian