Local Government (Independence) Bill

Official Summary

A Bill to define the independence of local government; to regulate the relationship between local and central government in England by means of a statutory Code; to require public authorities to act in compliance with the Code; to provide that the Code may only be amended by means of an Order under the super-affirmative procedure, approved unanimously by each House of Parliament or by a majority in each House equal to or greater than two-thirds of the number of seats in each House; to exclude any Bill to amend this Act from the provisions of the Parliament Act 1911; to make provision regarding the powers and finances of local government in England; and for connected purposes.

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Overview

The Local Government (Independence) Bill aims to formally establish the independence of local government in England from central government. It achieves this through a new statutory code that defines the relationship between the two, ensuring compliance and a robust process for amending the code.

Description

This bill introduces a "Local Government Independence Code" defining the relationship between central and local government. Key aspects include:

Local Autonomy: Local authorities are defined as autonomous, democratically-elected bodies accountable to their electorate, with a general power of competence to act within the law.
Financial Independence: Local authorities are granted significant financial independence, including a guaranteed share of income tax revenue and the ability to raise additional funds. Central government cannot cap taxation powers.
Amendment Process: The Code can only be amended using a super-affirmative procedure, requiring unanimous approval or a two-thirds majority in both Houses of Parliament.
Legal Recourse: The bill provides legal mechanisms for both local and central government to challenge actions that violate the Code, and includes mechanisms for judicial review.
Legislation Review: The Secretary of State is required to review existing legislation for compatibility with the Code within a set timeframe.

Government Spending

The bill mandates a guaranteed share of income tax revenue for local authorities, equivalent to 10 pence in the pound. The exact figure is dependent on the annual income tax yield. No other figures detailing the overall effect on government spending were present in the provided text.

Groups Affected

Local Authorities: Potentially gain increased independence and financial autonomy, but also face increased accountability to a new code and risk legal action for non-compliance.
Central Government: Will have less direct control over local authorities but retains some oversight through the code amendment process and financial distribution.
Taxpayers: Will see a portion of their income tax directly allocated to local government funding.
Citizens: May benefit from more locally-responsive government but must be aware of the mechanisms to engage with the new legal framework for recourse.

Full Text

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