WIREDGOV

Responding to proposals in yesterday’s Budget aimed at making it easier to convert commercial property into housing, Cllr Gary Porter, Chairman of the Local Government Association’s Environment and Housing Board, said:

"Removing the need for developers to obtain permission for converting empty shops into new housing may help in some areas, but it should be down to councils and residents to decide when and where this relaxing of the rules would be beneficial. This should not be a case of replacing one 'one-size-fits-all' approach imposed by Government with another.

“Residents need to have a say on plans which will change the shape of their towns, cities and villages, and it is important that councils can ensure there is a good balance between premises where people can work and homes in which they can live.

“Local authorities would like to see an improved planning system which favours local decisions over central control. Democratically elected councillors need to be able to make decisions that reflect the aspirations and needs of the people and businesses in their areas.

"Up and down the country there are examples of local authorities working innovatively to breathe new life into high streets and bring empty buildings back into use. It is important that any changes made by Government to the planning system give councils more flexibility, not less, and do not fly in the face of localism.”

Responding to the Budget announcement of an extra £100 million for councils to repair potholes, Cllr Peter Box, Chairman of the Local Government Association's Economy and Transport Board, said:

"It is good news the Government has responded to the concerns of local authorities by agreeing to the LGA's request for extra money to fix potholes caused by unprecedented winter weather.

"This extra £100 million - which comes on top of the additional £100 million announced in February - will help highways teams with the enormous challenge of tackling the £9.5 billion backlog in road repairs.

"Even as council budgets are being cut, it is vital that highway maintenance is sufficiently funded over the coming years if we are to prevent roads from crumbling into disrepair.

"Councils filled in more than 2 million potholes last year and, following the coldest December on record, face a difficult task to keep roads in a safe condition this year."

 
Responding to the creation of 21 new enterprise zones, Baroness Margaret Eaton, Chairman of the Local Government Association, said:

“The new local enterprise zones should help stimulate local economies and help foster private sector growth by encouraging businesses to set up within them.

“We are pleased that the Government has decided that local enterprise partnerships should determine their location. This will require local knowledge and careful consideration – not least because of the impact of enterprise zones on adjacent areas where there is a risk of displacement.

“The ability to retain business rate growth inside the zones will be a welcome source of funds for councils in the local enterprise partnership area. It is important that local authorities and local enterprise partnerships have the flexibility to decide how to reinvest these funds broadly in line with local economic priorities.”

Responding to measures announced in today’s Budget on public sector pensions and a one per cent increase in employer National Insurance Contributions, Baroness Margaret Eaton, Chairman of the LGA, said:

“The Hutton Review provides a broadly sensible approach to public sector pensions and proposes a workable balance between what is fair to staff and affordable to the taxpayer. We are pleased the Chancellor plans to use its findings as the basis for future negotiations. However, his plan to push ahead with a compulsory three per cent increase in pension contributions for public sector workers fails to recognise the significant differences between the funded Local Government Pension Scheme and the unfunded schemes in other parts of the public sector.

“With inflation high and public sector wages frozen, such a compulsory increase will hit workers hard. It is likely that the LGPS opt-out rate will rise as a result. We would seriously counsel against pushing ahead with plans which might undermine the future viability of a highly effective scheme which helps its 4.3 million members save towards a reasonable retirement and reduces reliance on state means-tested benefits.

“The one per cent increase in employer National Insurance Contributions will add an estimated £81 million to the local government pay bill. That’s enough to pay the salaries of more than 3,500 frontline staff on median wage. It comes as an unwelcome added expense at a time when councils are working extremely hard to save money in order to reduce job losses and protect frontline services in the wake of the biggest reduction to their budgets in living memory. We would much prefer to have seen this increase put off until after councils had the chance to implement more of the measures needed to reduce the impact of the cuts on their residents and workforce.”

Author: LGA Media Office
Contact: LGA Media Office, Tel: 020 7664 3333

See also

• Budget announcement - LGA on the day briefing 23 March 2011 The Local Government Association have produced an on the day briefing on the major issues in the Chancellor's announcement impacting on local government.