Councils are little more than agencies of Whitehallby Simon Jenkins / February 20, 2014 / Leave a comment
Published in February 2014 issue of Prospect Magazine
Britain’s local government is withering on the fiscal vine. Though a quarter of public spending is still administered locally, a mere 15 per cent of that quarter is covered by local taxes. Services are now almost all ordained by central statute. Council taxes and spending is largely determined by the Treasury. Councils are little more than agencies of Whitehall, coated in a veneer of democratic election.
Popular caricature has David Cameron’s coalition making deep cuts in public expenditure. This is untrue. In 2009, the high point of Gordon Brown’s supposed squandermania, total government spending was £633bn. After four years of “austerity” it is £718bn and rising. Even in real terms it dipped only once, by 1.5 per cent in 2011/12. George Osborne is the highest spending, highest borrowing chancellor in British history.
The chief reason for this is the ring-fencing of the cabinet’s favourites: health, education and overseas aid. Even the government pay bill, supposedly “frozen,” was rising until this year. Indeed, Osborne’s buoyant public spending could be the major driver behind the current recovery. “Austerity” was public relations to please ratings agencies.
The one sector to which austerity has been aggressively applied is local government. Council spending has been falling since the coalition came to power by almost 10 per cent a year. In the past 12 months, while central government employment has risen, an estimated 150,000 local government jobs have been lost.