SIGOMA launches Manifesto

Posted on May 02, 2023

SIGOMA 2023 Manifesto: For a Sustainable and Fairer Future

SIGOMA, the campaigning network made up of 47 urban local councils, is pleased to unveil the launch of its 2023 Manifesto.

The Government could achieve significant success with its Levelling Up agenda with simple changes like ending councils pitching against each other for funds, business rates reforms and implementing social care reforms, according to a new manifesto drawn up by a cross-party group of 47 urban local authorities.

SIGOMA, a campaigning network representing 47 councils with 14 million residents in towns and cities from Plymouth to North Tyneside, said the Government can do much more to support local government and ensure quality public services and fair distribution of resources, setting out the key changes to ensure funding is better used and distributed.

The manifesto is launched as political parties’ canvas for the upcoming local elections in England, with voters heading to the polls on Thursday 4 May.

Since 2013, there has been a shift in the way local authorities are financed. The structures that support a fair distribution of funds raised through taxation have been replaced by ones that tend to reward high value housing stock and a large and thriving business rate base.

As a result, the proportion of funding from Government by grants has reduced while the amount raised from local taxes has had to increased. This has benefited the wealthiest areas who rely less on grant funding and who raise more from council tax, business rates and other growth based local funding sources. Councils now receive £4,580 million less in grant and retained rates than is raised through the business rate system. In 2013-14, they received £4,930 million more – this is a reversal of £9,510 million.

SIGOMA has identified several areas that require significant Government reform in order to help councils that have seen Whitehall funding fall from 55 per cent of council’s core spending power in 2013-14 to just 37 per cent per cent in 2023-24.

Local Government Finance Reforms: The Government must move to a revenue funding model that restores the full distribution of business rates; recognises the primary importance of providing services through a needs formula rather than a growth formula; a full reset of business rates to allocate more funding according to needs. This is redistributive and would be revenue neutral.

Levelling Up: to fulfil the Levelling Up agenda, the Government must:

End the competitive bidding for funding pots that risks distributing funds to councils with the slickest bids, rather than to councils that need support the most.
Target Levelling Up Funding to the most deprived council.
Reform the UK Shared Prosperity Fund to reflect current need, replace lost EU funds and guarantee future rounds with the reintroduction of seven-year funding cycles.

Children’s Services: Implementing all the recommendations from the MacAlister Independent Review of Children's Social Care, including investing £2.6bn to make the reforms.

Adult Social Care: Equalise the social care precept in the Social Care Grant and Introduce price caps for agency adult social workers to end the bidding contests taking place between local authorities to secure social workers.

Transport: End the current paralysis for bus services by providing long-term revenue funding settlements for bus services to prevent local services being cut.

Housing:

Invest £10bn to help support the most deprived households in improving energy efficient homes and for private rented accommodation.
Grant New powers, such as an undeveloped land tax, to force developers to use land for house building or other developments within a certain time frame.
Make permanent amendments to right-to-buy to allow councils to re- invest proceeds from the scheme to build new social housing stock and reduce the arbitrary reductions in sale price.

Devolution: Focus on expanding powers for existing devolution deals to support where there is local demand, such as new additional funding deals for skills and transport.

Welfare: Make the Household Support Fund permanent to enable local authorities to continue supporting those in the greatest need and shift towards long-term preventative services which build financial capacity and resilience.

Chair of SIGOMA, Cllr Sir Stephen Houghton said: “As political parties step up their canvassing ahead of the local elections this week, households on every street are crying out for a Government and local representatives that can provide a promising vision for the future.

“Today’s announcement lays out a clear Manifesto that will help support councils across the country that are on their knees after 13 years of continuous cuts and provide them with the financial support to invest in their local communities and help generate long-term prosperity. This Manifesto is truly Levelling Up in action.”

Read the Manifesto on our dedicated section on our website here.

Read coverage of the launch in LocalGov News, the Northern Agenda, Public Finance, Yorkshire Live, the Sheffield Star, Business Green, Care Home Professional, Route One and About Manchester.