New poll shows strong appetite for devolution and new financial powers for cities
Date: 06/02/2008Nine in ten business and city leaders agree that England’s towns and cities need more financial powers to improve local transport and housing, according to a new survey, published today by PricewaterhouseCoopers and the Centre for Cities.
The survey shows a huge appetite amongst businesses, city leaders and other stakeholders in every region for greater financial devolution in England. Only 10% support the status quo, under which the majority of local funds are raised by central government.
- 86% overall are in favour of using new local funding tools, such as Business Rate Supplements and Roof Tariffs, to help bridge the investment gap.
- 92% of respondents agreed that business needs to have a clear say in how to tackle local transport and housing problems.
- Over two-thirds (69%) of all respondents believed their local authority would introduce business rate supplements (a local top-up to the national business rate, ring-fenced for investment in specific projects).
The research shows that councils and businesses think the time is right to change how cities are funded. Nearly all (98%) business and local leaders agree that city economies are being held back by inadequate public transport, roads and housing. And nine in ten agree that local, rather than national control over investment decisions is what’s needed. Cooperation and engagement between business and local leaders on how this should work in practice will be the key to securing further devolution to England’s cities and towns.
Dermot Finch, Director of Centre for Cities said,
"Our cities need more financial powers, to grow their economies. There’s much that city and business leaders agree on, but some sticking points remain. For example, while most are in favour of devolution in principle, nearly half of local business leaders do not think councils should have more tax-raising powers for major projects.
“Both businesses and local authorities need to be bolder about working together to bridge the gaps in local investment. And cities should give businesses a greater say on how locally-raised funds are spent. This will help pave the way for new powers like business rate supplements."
Angie Robinson, Chief Executive of Greater Manchester Chamber of Commerce said,
"Undoubtedly, there's now a greater willingness to devolve both financial and governance powers from national to local government. But trust and accountability are both needed as well as an innovative outlook to take advantage of the current climate.
“With proper controls in place and a clear set of agreed spending targets linked to tangible benefits, the way is open for those cities and businesses that move first on this to be the real winners."
For more information, please contact: Rosamund Taylor, Centre for Cities, 0207 803 4316
Mobile: 07876 175 426
r.taylor@centreforcities.org
For more information from PwC on the survey and related work in this area, please contact: Heidi Taylor, 020 7804 4798, heidi.taylor@uk.pwc.com
Notes to editors:
Financial Devolution for Local Growth is an independent survey of public and private sector leaders’ views on new funding tools for urban investment.
This survey was commissioned by PwC’s Public Sector Research Centre. It was conducted in October and November 2007 under the strict confidentiality guidelines of the Market Research Society Code of Conduct by Opinion Leader Research.
122 leading professionals and opinion formers (council leaders and chief executives; leaders of local business groups; chairs of Local Strategic Partnerships and other third sector bodies) participated via a telephone interview.
The survey is the final report of the joint PwC and Centre for Cities initiative City Solutions: financing local growth, which also included reports on Business Rate Supplements and Local Asset-Backed Vehicles.
The Centre for Cities is an independent urban policy research unit. It is a registered charity (No 1119841) and a company limited by guarantee registered in England (No 6215397). Our main goal is to understand how and why economic growth and change takes place in Britain’s cities, and to help cities improve their economic performance.
PricewaterhouseCoopers’ Public Sector Research Centre provides insight and research into views and attitudes as well as best practice in government and public sector organisations – including the interface between the public and private sectors – throughout the world.
