Fiscal devolution for the region should be welcomed but care needs to be taken as to how people are taxed
There is an overwhelming feeling amongst taxpayers that they are not getting value for money. As such the disconnect between voters and local democracy is growing.
However, it’s worth remembering councils in England are being asked to deliver more than ever before, without adequate funding to allow them to do so effectively.
The recent cross-party Housing, Communities and Local Government (HCLG) Committee report points to a broken link between tax and service quality leading to a growing dissatisfaction among residents. People are paying more and seeing less value in terms of services being delivered.
It would be too simplistic to blame council profligacy, given how widespread financial pressures are on local authorities up and down the country.
Councils have been squeezed as a result of mandatory high-cost services such as social care and special education needs. Local authorities have little control over these needs.
As such, the current system of taxation risks undermining trust in local democracy. That is why greater fiscal devolution, allowing councils to set their own forms of local taxes, to help make the local government system fair and effective, would be welcome.
Devolving powers to the regions is all well and good but they also need to be able to raise the necessary funds to deliver for their communities.
While fiscal devolution is to be welcomed, it is important that people don’t end up being taxed twice.
Overcentralisation of tax has held regions like Yorkshire back. Local leaders know their communities best. It also strengthens accountability.
The Government should free regions up and allow them to chart their own destiny through meaningful tax powers.