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RELUCTANCE TO IMPROVE FINANCING OF LOCAL SERVICES

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There is reluctance in both central and local government to improve the way local services are financed, says The E...
There is reluctance in both central and local government to improve the way local services are financed, says The Economist (p30).

Councils are hesitating to take the steps available to cut costs, despite several Audit Commission reports on the scope for savings, because of the potential for job losses and the prospect of having their future grant cut by the government, it says.

And political parties are avoiding any drastic reforms of local government finance because of the poll tax fiasco.

It says Britain needs a better way to pay for local services than the current dependency on government grants which provide more than 80% of councils' income.
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