Liberal Democrat party conference: achieving local renewal
Director of Policy and Research
At this year’s Liberal Democrat Party Conference we brought together local authority leaders, private sector operators, and policy specialists for a discussion with Sarah Olney MP, the party’s spokesperson covering the Business Department and the Cabinet Office. With her portfolio cutting across both local growth and the machinery of government, she was well placed to reflect on the challenges and opportunities in this space.
Kindly sponsored by Core Cities, the conversation moved across themes of devolution, the empowerment of local leaders, the skills agenda, and the tax system.
Three points stood out:
- The local tax system is misaligned with growth ambitions
Much of the discussion focused on the weaknesses of council tax and business rates. Both were seen as poorly designed and often counterproductive, with council tax criticised for its regressive structure and business rates for discouraging investment. These are familiar complaints, but what struck me was the breadth of agreement on the need for reform, coupled with scepticism about whether current government plans will address the scale of the problem. For many, more fundamental reform still feels out of reach. - Workforce challenges unite the public and private sectors
Participants spoke at length about adult skills policy and workforce shortages across the economy. The private sector’s concerns about skills echoed those of local government, creating a shared sense of urgency. Yet the solutions are less obvious. There was consensus on the need for a rebooted apprenticeships scheme. However, some emphasised the importance of robust accreditation, while others argued for greater workforce mobility and flexibility. The tension between these perspectives illustrates why progress in skills reform has been so difficult. - Devolution and reorganisation are no cure-all
Several participants drew on their own experience of working in devolved contexts. The verdict was mixed. While devolved authorities can provide the scale needed to shape strategy and drive change, shifting political incentives and leadership can just as easily disrupt long-term planning. On structural reform, views differed on the rationalisation of two-tier areas into unitaries. For some it was a pragmatic step, for others an over-centralised and directive process.
Although Liberal Democrats do not currently hold metro mayoralties, they run more than 70 local authorities across the country. Understanding their perspectives on growth, governance, and reform therefore gives an important sense of the priorities shaping local politics in the years ahead.