There is a clear commitment from the coalition to localism and decentralisation, and along with upcoming proposals to reform local government finance, community budgeting is arguably one of the most powerful mechanisms of doing so.
James Morris, Author at NewStart
Our current system leaves local authorities at the whim of the government in power at any given time, without any recourse to effectively argue their corner. Tackling this issue is more relevant now than it has been in the past, because a new stage in the relationship is developing...
We need an alternative which local communities can use to leverage funding to create new infrastructure. This is where TIF – tax increment financing – comes in.
The next wave of development zones will benefit from expected measures such as simplified planning rules and lower levels of corporation tax. Councils are also likely to be able to keep high proportions of the business rates they raise in the zones. The key issue is how these measures impact upon the neighbouring areas.
By creating local enterprise partnerships instead of the bureaucratic and expensive RDAs, businesses have now been given a greater say in how they can help to develop our communities.