Crude localism
There is something a little blunt in giving people the right to veto council tax increases. While vastly preferable to what we have at present, real localism ought to allow people a slightly more refined way of setting local tax and spend options.
Eric Pickles is a formidable advocate of “radically extended direct democracy”. He ought, therefore, to look at devolving the right to raise revenue too, rather than just a veto over tax hikes.
At present £3 out of every £4 local councils spend comes via the Treasury. Not only does this allow Whitehall to micromanage town halls, but it means that any right of veto people are given will be a judgement passed on the margins.
To give people real local control over council budgets, as opposed to a veto over the periphery, ministers are going to have to overcome those vested interests in the Treasury who’d loath any such moves.
With Lib Dems - who've been talking about this for years - now in government, and the trauma of the poll tax a distant memory, I'd have thought there's a good chance the Coalition might be willing to be bold.
Local councils have also been given the right to beg money from a regional growth fund, presided over by Lord Heseltine. Hummm.
Rather than asking the Lord H’s of this world for taxpayer cash, localism ought to be about local town halls having to persuade local residents to part with their money, in return for delivering certain levels of local service.
If Ministers want a few tips on how this could be done, here are some suggestions.