New Labour, New Association

Minister Promises Local Government Reform

The pledge was reaffirmed by the Local Government Minister, Hilary Armstrong, along with a review of council tax bands, in a speech to 1,500 councillors at the first Local Government Association conference in Manchester.

She said a "fair and just finance system for local government" was vital for renewed and vigorous local democracy.

Hilary Armstrong: tough line on spending

Local people had to see their needs were understood by central Government, but also that their council was given the flexibility and opportunity to make financial decisions for which it was accountable to the voters.

Ministers have refused to put a timetable on their plans to end capping, but there was a warning to councils that it should not signal a spending spree. Ms Armstrong said the Government had powers to protect taxpayers against big rate increases.

Moves to end the system of compulsory competitive tendering for services such as road sweeping and refuse collection would now go ahead. Councils are being invited to take part in 'best value' pilot schemes aimed at getting good value for taxpayers.

Her speech outlining details of the financial review came during the closing session of the newly-formed LGA's first conference.

The LGA is the result of the amalgamation of the old organisations representing the metropolitan, district and unitary authorities.

Its chief executive, Brian Briscoe, told delegates that after years of increasing centralisation by the Conservatives and the rejection of any argument which appeared to disagree with the view of central Government, there was now a new partnership with ministers.

He rejected the charge the LGA had "sold out" in return for a chance to get close to ministers and have a seat at the table.

"It is probably more difficult to be constructive and positive after years of dispute. But it ought to be more productive. If our ideas are sound, and if we have a real contribution to bring to the table, we shall be listened to," he said.