Nick Clegg is Right (About Local Government)

An interesting story on local government reform in the Daily Mail:

Nick Clegg is demanding councils be given the power to impose a massive range of new local taxes.

Among the levies he suggests are for fuel, alcohol, office parking, landfill and even speeding.

But the Liberal Democrat Deputy Prime Minister is being blocked by Eric Pickles, the Tory minister who is in charge of local government.

Hard-pressed taxpayers – who have witnessed enormous council tax rises over the past decade, and are now struggling to cope with the effect of the recession – will be angry at any sign the Government is planning to impose additional local charges.

Local Government Chronicle magazine has been passed a leaked letter from Mr Clegg to David Cameron, Chancellor George Osborne, Chief Secretary to the Treasury Danny Alexander and others.

In it, he calls for the introduction of American-style local sales and fuel taxes and parking levies, to enable councils to be almost entirely self-financing.

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Ed West

How bad will a Labour government be?

Typically, the Mail frames this as a tax-raising measure. And perhaps many councils would increase taxes. But that’s a good thing. Provided, mind you, central government reduces taxes. That’s the deal. If the government’s bally localism agenda is actually going to be properly meaningful local government must raise rather more than 15% of its income itself. Broadly speaking, the Lib Dems have the better of this argument and the Tories are wrong even if the detail of the matter remains open for discussion. Spending powers that aren’t balanced by revenue-raising duties will always be abused.

And while we’re at it, a better government communications shop would be pointing out that Dave’n’Nick are not responsible for decisions made by local councils. It’s not the government that’s closing things, it’s local government that’s choosing what it will and will not spend money on.