News

New draft legislation on local government regulations promises to give local authorities more freedom for funding and commissioning services.

The draft Local Government Bill includes proposals to give councils the power to borrow money to pay for major building projects, set up schemes with businesses to improve their area and offer more flexibilities for top performing councils.

The bill, published by the Office of the Deputy Prime Minister, follows last December's local government white paper Strong Local Leadership - Quality Public Services.

Giving local authorities the freedom to borrow money to finance capital schemes will be particularly welcomed, as it should offer the chance for enhanced investment in infrastructure and services.

Currently, councils have to get government permission to borrow money and have argued for some time that the requirements are too restrictive.

Meanwhile a new report by the Commission on Local Governance argues that close central government control is stifling councils' ability to deliver good public services.

The report, Free to Differ: A Future for Local Democracy, recommends local authorities be allowed to increase the amount of money they raise locally to upwards of 50 per cent of their total budget.

For more on the report go to www.lgiu.gov.uk/celebrate/Press1.htm