Following the Lyons Inquiry into Local Government Finance that drew attention to the lack of public understanding of local government finance, you have been asked to write a short feature explaining clearly to your readers how local government is financed.
(a) Describe in details the sources funding for local government revenue expenditure, indication clearly the role of central government.
(b) List five local sources to whom you would go to provide quotes and indicate five questions you would ask:
Answer (b): I would like to interview the following local sources and these are the questions I want to find out from my interviewees:
1. Local Councillor who is holding the Portfolio of Finance and Resources: Does the government have any plans to reform Council Tax even after the Lyon Inquiry?
2. Local MP in Opposition: Could there be another way of making the Council Tax system more beneficial for the council, meanwhile keeping it affordable for the local residents?
3. Local resident: Are you satisfied with the current Council Tax system and why?
4. Third party such as the TaxPayers’ Alliance: How do you think the Council Tax should be used in order to make best use of the tax payers’ money?
5. Council Tax expert from companies such as Deloitte, PwC UK: Do you think the Council Tax is being used wisely by the local government and why?
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