The Local Government Independence Bill, which is being sponsored by Labour MP Graham Allen, declares separation between central and local government and their respective finances and makes local authorities constitutionally responsible to their local electorates rather than Whitehall.
It also statutorily bars Whitehall from interfering in local financial matters and capping council tax bills, for example.
While the Bill allows councils the freedom to borrow against their credit rating, it requires them to operate a balance budget.
The Bill is being launched at a House of Commons reception, attended by the Mayor of London, the Core Cities Cabinet and London Councils, which together make up the City Centred campaign.
Allen, who also chairs the Commons constitutional affairs committee, said: ‘I very strongly support the Mayor of London, the Core Cities Cabinet and London Councils in campaigning for greater financial independence. My Bill takes the next logical steps to bring England into line with virtually every other western democracy and create separate and independent local government.’
A spokesman for the City Centred campaign said: ‘We welcome Graham Allen’s important contribution to as to why and how England’s local government should be granted greater freedoms from central government control.
‘There are growing cross-party calls for this issue to be addressed in order that our regions can better drive economic, social and political growth in response to local priorities.’
