Overview

The Local Government (Independence) Bill aims to legally define the independence of local government in England, establishing a clear framework for the relationship between central and local authorities. It introduces a Local Government Independence Code, strictly limiting central government's ability to interfere with local governance and finances, and provides legal avenues for local authorities to challenge central government actions that infringe on their independence.

Description

This Bill establishes a Local Government Independence Code (LGIC) outlining the relationship between central and local government in England. The LGIC enshrines the principle of local autonomy, emphasizing the accountability of local authorities to their electorate. Key aspects of the Code include:

Local Autonomy and Self-Government:

The bill clarifies that local authorities are autonomous, democratically-elected bodies with the power to independently manage local affairs, except where specifically restricted by statute.

Financial Independence:

Local authorities are guaranteed a share of income tax revenue and are given greater freedom in raising additional funds. Central government cannot cap local taxation powers.

Amendment of the Code:

Amendments to the LGIC require a super-affirmative procedure in Parliament (unanimous approval or a two-thirds majority in each House).

Legal Recourse:

The Bill provides legal mechanisms for local authorities to challenge actions by central government or other public authorities that violate the Code.

Review of Existing Legislation:

The Secretary of State is mandated to review existing legislation for compatibility with the LGIC within five years, with incompatible legislation to be amended or repealed within seven years.

Government Spending

The bill doesn't specify exact figures for increased government spending. However, it mandates a guaranteed minimum share of income tax revenue for local authorities, potentially increasing central government's expenditure on local government funding. The long-term fiscal implications depend on the implementation of the LGIC and the subsequent review of existing legislation.

Groups Affected

• Local Authorities: Potentially gain greater financial independence and autonomy in decision-making. They also gain new legal avenues to challenge central government.
• Central Government: Faces restrictions on its ability to control local authorities and their finances. May experience increased financial burdens due to the guaranteed minimum income tax revenue for local councils.
• Electorates: May experience changes in local services and governance depending on how local authorities exercise their new powers.
• Courts and Tribunals: Will have a role in resolving disputes between central and local government arising from the LGIC.

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