PARLIAMENT COMMITTEE ANNOUNCES TERMS OF REFERENCE FOR INQUIRY INTO LOCAL GOVERNMENT FINANCE

Announcing the terms of reference of the inquiry convener Trish Godman said:

"As a result of our consideration of the McIntosh Report, our committee agreed that, in the best interests of local government in Scotland, an urgent review of its finance system is called for. And following the Scottish Executive’s decision not to carry out an independent review, we decided to instigate an inquiry ourselves.

"Last year, during our visits to councils throughout Scotland, the need for a review was consistently put to us by local government representatives. Whilst we recognise that the Scottish Executive is in the process of reviewing some aspects of local government, we feel that the committee could provide a more comprehensive and independent review.

"Therefore, the broad terms of reference of our inquiry will be:

• to examine the current system of local government finance, including systems of local taxation;
• to identify strengths and weaknesses of the current system, and
• to make recommendations on improving the system.

"The committee’s intention is to complete its inquiry and report to Parliament by January 2002."

Written Evidence to the Committee

Anyone wishing to submit written evidence to the committee can do so setting out views specifically on the following issues:

• The balance between central and local funding
• The Council Tax
• The Non-Domestic Rate, in particular whether or not it should be returned to council control

Alternatives to the Council Tax, including—

• local sales tax
• land value tax
• full council tax on second homes
• private non-residential parking

Issues in relation to the grant system including—

• hypothecation and challenge funding

Other issues—

• Local authorities non-housing revenue finance
• Capital finance
• The role and cost of the Private Public Partnership (PPP)
• The definition of the Public Sector Borrowing Requirement (PSBR)
• The impact of the review of the Special Islands Needs Allowance (SINA)

Submissions should be received by 18 December 2000. Please write to:

Irene Fleming
Senior Assistant Clerk, Local Government Committee
Room 2.5, Committee Chambers
Scottish Parliament
EDINBURGH
EH99 1SP

or email them to local.government@scottish.parliament.uk

BACKGROUND NOTES

The formal title of the ‘McIntosh Report’ is the ‘Report of the Commission on Local Government and The Scottish Parliament.’

During its fact-finding tour to discuss key local government issues, the committee visited 15 local authorities (out of a total of 32) across all of Scotland.

The Local Government Committee home page.

Visit our website at: www.scottish.parliament.uk