|
Briefing Document No 13 - Page 4 of 4
Local Government Finance - Continued.
(C) Local Government Committee
Parliament's Local Government Committee decided to carry out its own investigation into the current system of local government finance, including systems of local taxation. They initially invited evidence on issues including: (a) the balance between central and local funding (b) non-domestic rates - in particular whether or not they should be returned to council control (c) council tax and alternatives, including local sales tax, land value tax, etc (d) the grant system, including hypothecation and challenge funding, and (f) other issues such as capital finance, the role and cost of the Private Public Partnership (PPP), and the definition of the Public Sector Borrowing Requirement (PSBR). The Committee has already heard evidence from Ministers and Councillors; it will report to Parliament by January 2002
Political Context
In opposition, political parties tend to argue for more power to be given to local authorities. When in power the arguments are less fervent, perhaps because they realise the electorate will blame them for any mistakes their local colleagues make. The Executive wants councils to improve their effectiveness and transparency before giving them more power. In reality, while many of the issues are well known, the decision about which way to move is both economically and politically complicated (not least by relations between councillors and MSPs within the parties). This is perhaps why the Executive sees changes evolving slowly from a positive working relationship with the local authorities.
Theological Context
This is not an issue with one clear moral dimension or Biblical basis for discussion; nor is it one in which churches have obviously relevant expertise. But the outline above shows there are running through it important areas of Christian concern, and there are theological perspectives which can illuminate the discussion.
From Babel onwards, there is a strong Old Testament theme of hostility to centralised power, based not least on recognition of the sinfulness that infects structures of power. Linked to that is the churches' teaching on "subsidiarity" - that decisions should be taken at the level closest to those affected by them. Accountable local democracy would therefore be seen as something to be nourished.
As is often the case, much of the discussion is about "fairness" - of distribution formulae or of systems of local taxation. Arguing from the Biblical demand for justice, churches have given support to the case for options which best serve the poorest.
Churches also have considerable experience of working with local government, eg in provision of care, and of feeling the impact of spending decisions on voluntary sector projects and on the lives of vulnerable people in communities. That has, for example, led some church bodies to be advocates of ring-fenced financing to ensure that promises made nationally can be delivered locally.
While these few brief pointers don't add up to a Christian policy on local government finance, they may stimulate an important contribution to the debate.
|
