Value of social impact bonds doubted
A senior policymaker has claimed that local government finance reforms will only stimulate growth if they can be simpler and more definite.
It was also claimed that none of the reforms would revolutionise local capital finance in the way that Labour’s prudential borrowing arrangements had done by removing the need for central government approval to borrow.
Andrew Lewis, the director of policy, strategy and communications at Newcastle City Council, said social impact bonds are unlikely to work because councils’ suspicion over government’s business rate retention proposals may be misplaced.
Mr Lewis added:
“Local government should welcome the principle of our business rates being localised because it gives us a much stronger connection to our businesses.
“It can potentially create greater certainty in our budgets [since] we will have one formula and it will be fixed for 10 years.”
Add Your Comment