Labour at risk of becoming 'obsolete' in local government

The Labour Government has been warned that it risks becoming obsolete in local government unless it adopts radical policies on devolution and constitutional reform.

In a joint essay from the thinktank NLGN and campaign group Progress, Labour is urged to give local authorities new fiscal powers, new powers over police and health priorities and to transfer power currently held by unelected quangos to democratically accountable councils.

The essay also suggests that Labour should drop previously unpopular policies such as charging residents for extra waste collection in favour of offering financial incentives to encourage recycling.

It comes following poor results for Labour in this week’s County Council elections and calls from a number of Cabinet Ministers including David Miliband for Labour to devolve more powers from central government to councils and local communities.

Authors Jessica Asato and James Hulme suggest that Labour’s support in local government “now resembles a retreating army” and that “Labour has yet to fully recalibrate a new vision for decentralisation and a modern role for local government”.

They also criticise Labour’s approach to decentralisation in government, arguing that reforms have often been too timid:

“Labour’s direction over the last twelve years has sounded devolutionary in principle but has failed to deliver the goods in practice. Empowerment, double devolution, localism, are buzzwords which have peppered ministerial speeches for too long without genuinely shifting the necessary power and financial muscle to the level of democratic authority which might be able to use it best.”

The authors argue that Labour could regain the initiative by introducing a range of pro-devolution policies including:

• Reforming council tax to make it more progressive by increasing charges on higher tax bands and cutting them for people on low-income
• Giving councils greater influence over deciding local police and health priorities
• Leading a review into the powers and spend of quangos with a view to devolving more powers and budgets to local authorities and communities
• Offering interest free loans through local authorities for households to make their homes energy efficient
• Introducing city mayors into major English cities and giving them enhanced fiscal powers

The essay concludes:
 
“The challenge for Labour is to match its often pro-devolution rhetoric with real reform, not just putting in place new duties and agreements but devolving real powers and responsibility and putting faith in the local state to deliver. Labour must embrace the reasoning that while the central state has an important role to play, it certainly does not hold all the answers. It is by no means an easy journey, but it is one that is vital should Labour want to regain its place as the party of local government.”

The essay is published in a new collection featuring articles from Labour Ministers and council leaders, Labour and Localism.