The London finance commission report, launched at City Hall last week, may seem a world away from the lives of people struggling to find good homes in the capital, but its recommendations are central to tackling the problems that Londoners face.
The commission, chaired by Tony Travers of the London School of Economics, sets out an agenda for change which could mean that London's democratically elected politicians would not only set the priorities for the government of the city, but also have control of the money to take action when and where it was most effective.
Britain has one of the most centralised systems of governance and public finance in the world. In New York, the mayor and the boroughs determine the way that 50% of taxes raised in the city are spent; in London that figure is just 7%.
Why does this matter? Housing is a case in point. The housing crisis is having a much greater impact on Londoners than in other parts of the country – with rents and house prices still rising in the capital as they fall elsewhere.
A rising number of people are becoming homeless, which puts greater pressure on local councils as they struggle to find sustainable homes for residents.
The acute impact is seen by councillors now in their surgeries, but the chronic cost of the crisis – such as the effect on the educational performance of children living in overcrowded accommodation – is yet to be felt.
London's councils have recognised these problems for some years, yet they still have to go cap in hand to central government to demand resources to tackle the problem rather than being able to respond quickly to address the issues that are a priority for the people who elect them.
As Tony Travers points out in his introduction, Londoners know that they need new railways, schools, waste facilities and, of course, homes. "Because of our day-to-day dependence on physical infrastructure, we believe London voters would be more likely than voters elsewhere in Britain to prioritise spending on long-term investment," he writes.
Londoners are different, as are Mancunians and Liverpudlians. Our centralised system of government fails to recognise this to all our costs. As Scotland and Wales, with their combined economies smaller than that of London, take on the mantle of devolved government it is time for England to experience the benefits of devolution too.
There is much detail to be worked out on how London's boroughs will work with the mayor to make sure that decision-making on a devolved taxation system truly reflects local priorities and the diversity of the city, but the report sets out strong principles to guide this process on which we will be building in the coming months.
Next time you hear the words "local government finance" and, in particular, the London finance commission, don't fall asleep. Sit up and take notice. It's all about jobs, growth, railways, schools and homes.
Mayor Jules Pipe is the chair of London Councils
This content is brought to you by Guardian Professional. Join the local government network for analysis, best practice and the latest job opportunities
No comments:
Post a Comment