The Future Shape of Local Government

Welcome and Introductions

Steven BeardChief Executive, Agilisys

Welcome and IntroductionsMike Suarez

Director of Finance, Lambeth Council

David MagorChief Executive, IRRV

Alison ScottAssistant Director, Policy & Technical, CIPFA

Tracie EvansDirector of Resources

Timetable1:30pm Welcome and Introductions Steven Beard

1:40pm Beyond Austerity? Alison ScottDavid Magor

2:00pm Discussion Mike SuarezTracie Evans

2:40pm Closing Comments Steven Beard

Austerity and beyond

Alison Scott, Assistant Director, Policy and Technical, CIPFA

Austerity – to date

• Unprecedented budget reductions since 2010, • Localism and major new responsibilities • New partners and sources of finance • PAC, NAO and AC have concluded that local government has

coped to date. • CIPFA’s 2013 CFO Budget Survey identified the biggest risks to

budget delivery as council tax benefit and business rate income.

Austerity – Where Next?• PAC Committee

““To date, councils have, as a whole, managed to cope, but with reductions likely to continue for several years, the pressures on the sector are set to increase”

• Echoed by CFO Survey – 63% of CFOs less confident about delivery of 2014/15 compared to savings to date.

• Spending reductions were falling hardest on councils with the highest deprivation, and that some might cease to be viable

Austerity – Redistribution

• 2013/14 Settlement Figures, reduction in spending power – Shire Counties with Fire -2.3%– Shire Districts - 3.1%– Shire Unitaries - 3.5%– Metropolitan Districts - 4.6%– Inner London Boroughs - 5.2%– Outer London Boroughs – 3.6%

• In-depth interviews with CFOs• Citizen and the State

Community Workers? A drop in the Ocean?• Delayering and Localism

Localism from the centre? Doing business?Beggar they neighbour?

• Efficiency through collaborationSharing alike? Two tiers bad?

Austerity – A Solution?

Austerity – LGGP Project on Future of Local Government

• Long-term look for solutions to continuing austerity.• Contribute to and promote debate about future of local

services.• Discussion document circulated at Conference• Seeking Input to Discussion Paper to be Published in

Summer• Widespread consultation and debate during Autumn

The Future Shape of Local Government

David Magor OBE IRRV (Hons)Chief Executive

The Institute of Revenues Rating and Valuation

The Future Shape of Local Government

• A national unitary structure• Fiscal decentralisation the IMF dream but• Equalisation always an issue• A local policy and operational core• Services delivered by the private, mutual and

third sectors

Financing Services

• Council Tax• Non domestic rates• Property taxes driven by democracy?• Other local taxes• Charging for services• Dealing with debt

Supporting Society

• Welfare reform– Council tax reduction– Universal Credit– The role of local government

• Localism• The local influence on economic recovery• An effective vocational plan for young people • Dealing with poverty

The Future Shape of Local Government

The Future Shape of Local Government