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LOCAL GOVERNMENT FINANCE REVIEW COMMITTEE (LGFRC)
MINUTES OF THIRD MEETING: 25 OCTOBER 2004, 5th FLOOR, 5 MORRISON
STREET, EDINBURGH
Present:
Committee
Sir Peter Burt, Chair
Peter Daniels OBE, Member
Janet Lowe CBE, Member
Professor John Baillie, Member
In Attendance:
Nikola Plunkett, Scottish Executive
David Milne, Scottish Executive
Billy McKenzie, Scottish Executive
1. Minutes and matters arising
1.1 The draft minutes of the meeting on 1 October were agreed.
1.2 The meeting with Sir Michael Lyons was being progressed by
the Secretariat. No date had been agreed as yet but it was hoped
this would be finalised prior to the 12 November meeting.
1.3 It was agreed that the appointment of the
Committee's special advisor should be taken forward with a view
to appointing him in advance of the meeting on 12 November to
allow him to attend that meeting. It was agreed that Peter Daniels
and Nikola Plunkett would progress this.
1.4 There was one outstanding future meeting date to arrange.
Members agreed that the meeting would take place
on 16 February 2005.
2. Draft Consultation Paper
2.1 There was a general discussion of the latest draft consultation
paper. Several drafting suggestions were made in order to improve
and expand on the document. It was noted that the document should
be drafted in such a way as to ensure that comprehensive views
would be submitted on all the issues arising from the remit. In
addition the language in the document should be drafted with the
lay person in mind so as to be accessible to members of the public.
More explanation had to be given regarding the principles of the
local government finance system, and the issues raised in the
remit, to ensure that informed views were given. It was also suggested
that the document should explain what issues the review would
be covering, and those that were outwith its remit. This would
ensure expectations of the review were accurate and that responses
to the consultation addressed the relevant issues. It was also
suggested that the basic principles of a local taxation system
should be covered in the document.
2.2 It was agreed that the document would be
in 3 sections:
• The basic principles of a local government finance system,
including:
- Fairness
- Accountability
- Equalisation
- Economic growth
- Practicality
- Stability
- Predictability
• Discussion section on whether a local tax should be a
tax, or whether it should be a charge for the services provided,
how to do this and how could alternative systems help.
• Lay person explanations of the various local taxation
systems, with further explanations on how the principles apply
to each system. Identical questions should be asked against each
system, with respondees asked to indicate a preference. Opinions
should also be requested on whether there should be a mixture
of taxation systems.
2.3 It was agreed that Peter Daniels would redraft
the document in light of the comments made and submit the redrafted
version to members for comment in advance of the 12 November meeting.
It was also agreed that prior to launch the document
would be passed to a suitable "consultation expert" so they could
give comments on the structure and language, as well as advice
on the technical aspects of a consultation. Following this the
document would be passed to a suitable local government finance
expert as a final check. Both COSLA and Audit Scotland were mentioned
as appropriate organisations to approach about this.
3. Information Papers
3.1 The Committee stated they found these papers informative.
The Secretariat were asked to provide a further list of what charges
local authorities can apply and it was agreed
that secretariat would find out if this information is readily
available and provide it in due course.
4. LGFRC Website
4.1 The Committee were taken through the sections of the draft
LGFRC website. Several suggestions were made regarding changes
to the text and these would be taken forward by the Secretariat.
An amended website would be developed in advance of the 12 November
meeting, with the aim of launching the site soon after that date.
5. Any Other Business
5.1 Various meeting requests had been received from organisations/individuals.
The Committee agreed that meetings with relevant organisations
would be useful to its work but that these should take place once
the public consultation period had closed.
5.2 The Committee agreed that the standard remuneration claim
for all members would be 1 day per meeting. It was noted that
individual time commitment may exceed that but that members were
content to claim on this basis.
Summary of action points:
- Peter Daniels and Nikola Plunkett to progress
appointment of special advisor in the hope that the individual
chosen may be able to attend the meeting on 12 November
- Peter Daniels to produce a redrafted consultation
document reflecting comments made by members
- Secretariat to provide a list of what services
a local authority can charge for
- Secretariat to update draft LGFRC website
Local Government Finance Review Committee
Secretariat
November 2004
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