The current system of rating and non-rating authorities is long-established. There are 54 rating town councils (including the five borough councils) and 26 non-rating town councils, previously known as town commissioners.
The Report of the Local Government Efficiency Review Group published in July 2010 includes a recommendation to transfer responsibility for planning, roads and housing functions from town councils to county councils on efficiency grounds and to eliminate administrative duplication. Allied to this is the recommendation to remove the power to determine the annual rate on valuation (ARV), which forms the basis of the levying of commercial rates, and the application of town charges in the same manner as in respect of existing non-rating town council areas.
A range of work relevant to local government reform is already under way or in planning arising from the report and I am reviewing the next immediate steps to augment this work. I will also be considering wider proposals to renew and develop the local government system in line with the Government's programme and building on relevant research and analysis already undertaken in this area. In the meantime and as recommended in the report, I am establishing an implementation group with an independent chairperson to drive, oversee and report on progress being made in the implementation of relevant recommendations.
Key objectives under the Programme for Government include devolution of greater decision-making to local level, strengthening the powers and functions of local authorities; enhancing the development and leadership role of local government and strengthening its structures and funding arrangements. I intend bringing proposals to Government in due course on action to take forward the proposals in the Programme to strengthen the local government system and improve its capacity to meet current and future challenges and to make a substantial contribution to the national recovery effort.