Lyons Inquiry:
Sir Michael Lyons challenges local government to "take debate to the public"
Lyons Inquiry Press Notice: 31 January 2006
Sir Michael Lyons today developed his argument for a wider debate on local government and local government finance.
Speaking at the
Euromoney Local and Regional Government Financing Conference in Manchester, Sir Michael argued that the Government may be approaching a "tipping point" in an emerging consensus about the need for devolution.
However, he also emphasised that evidence is needed about public support for a wider role for local government in order to enable this change to happen, and challenged local government to take this debate to the public.
"Many people seem to think that the debate on the role of local government and its financing is one that can be conducted between local authorities and Government ministers without wider input. That isn't true. I believe that this is ultimately a question of how we want to be governed, and we can't answer that question without taking it to the public."
Sir Michael argued that a wide debate about the function of local government will help illuminate questions about local government funding, which remains the core purpose of his Inquiry. Referring to the conference's focus on the future funding of local government, Sir Michael emphasised the potential contribution that local authorities can make to economic development.
He also questioned whether the balance of funding between local revenue sources and national grants is the most important part of the debate on finance, or whether the degree of local choice and discretion over spending might not be more important.
"A number of local authorities have expressed their concerns about the lack of flexibility that capping and Government grant decisions place on their spending decisions. But changing the balance of funding wouldn't change that. We need to consider whether a more important issue is the degree to which local authorities should have choices about their spending."
Finally, Sir Michael encouraged all stakeholders to contribute to the consultation he is currently undertaking, and to contact the Inquiry with information about the ways in which they have or would like to engage with the public.
Notes for Editors
- Sir Michael Lyons was originally commissioned in July 2004 by the Deputy Prime Minister and the Chancellor to make recommendations on how to reform the local government funding system by December 2005. On 20 September 2005 the remit of the Inquiry was extended to enable Sir Michael to consider issues of function before finalising his conclusions on funding.
- On 15 December 2005 Sir Michael issued a consultation paper and interim report, inviting responses to the questions posed by 13 March 2006. At the same time submissions received from organisations and the research commissioned by the Inquiry were also published. Further thematic papers will follow, and the Inquiry will conclude with a final report to Ministers in late 2006.
- Copies of the report, submissions, research commissioned, and the terms of reference for the Inquiry, can be found on the Lyons Inquiry website at www.lyonsinquiry.org.uk
- Any press enquiries should be directed to GNN on 0207 217 3779.
A copy of the presentation given by Sir Michael lyons can be downloaded from the
speeches and presentations page on this website
