A non-political Grants Commission should be established in the UK to identify the real needs of the UK’s nations, regions and local authorities, as a means for setting in place a fairer method for distributing central funding. This call to move tax distribution decision making away from Whitehall is made by the New Local Government Network in a pamphlet ‘New Localism, New Finance’.The pamphlet argues for the abolition of the current ‘Barnett formula’ which it is claimed “bears no relation to needs”. The proposals, which draw on extensive research from Australia and Canada, outline how a radical overhaul of how we fund local public services across the UK would help boost equity and efficiency without introducing complex formula or creating perverse incentives. The proposed Grants Commission would be independent of central government and determine the needs of the UK’s twelve standard regions.
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