Labour Policy Watch: Local Government

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	The Tories were hostile to local government, very little of which they controlled. The GLC and metropolitan authorities were abolished. Spending levels fell as a proportion of GDP, and services had to be cut or charges imposed. Local business rates were "nationalised", and the proportion of local government income coming from central government rose from 50% to more than 80%, while the rest could be capped. This, and increasing control over how services should be run, left local government effectively acting just as agents of central government. Even then, their role as direct service providers was reduced as services were handed to unelected quangos or privatised. Competition against private contractors under Compulsory Competitive Tendering (CCT) led to pressure to cut costs resulting in worse services and poor pay and conditions.
	Labour policy was:
	1	To restore the GLC and metropolitan authorities
	2	To return local business rates to the control of local authorities
	3	To increase the proportion of local authority income collected locally, so that councils were more accountable to their electorates
	4	To end central capping
	5	To end the interference in how local authorities discharged their functions
	6	That most services should again be provided by local authorities
	7	To end CCT
	8	To protect the terms and conditions of workers transferred to private companies and ensure there was no 2-tier workforce
	In fact under New Labour:
	1	A Greater London Authority with less powers than the GLC was established [and metropolitan?]
	2	Local business rates were still passed to central government
	3	This rose slightly but only because business paid a lower proportion
	4	Capping powers remained and council tax benefit subsidies could also be capped
	5	Interference increased over funding, responsibilities, inspection systems and public service agreements; councils were pressurised to conform to government expectations by competitions for funding and promises for the "best" authorities plus threats to "failing" ones
	6	More functions were taken away from councils, new quangos were set up and by 2001 there were 5 times as many local "Quangocrats" as councillors
	7	CCT was replaced by Best Value where the lowest bid did not have to be accepted, but in practice the privatisation of services accelerated
	8	After repeated promises this was finally achieved
	In addition:
		Key council decision taking was passed to small executives, with pressure to pass it to a directly-elected mayor, and the role of most councillors was much reduced
		As councillors faced increased bureaucracy with decreased powers and freedoms, it became difficult to find able people prepared to stand as councillors
		Turnouts at local elections were at very low levels
		Further reductions in the numbers of councils and councillors were predicted
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