A recent report from the Local Government Association has estimated that needless bureaucracy is costing councils in England £4.5billion a year which could be spent on vital local services.

The Local Government Association (LGA) says there should be “a bonfire of red tape” to save taxpayers’ money.

The report says that increased running costs and staff numbers in recent years had left every household in England paying at least £11 more than necessary.

The Liberal  Democrats said the government has “tied local authorities in knots”.

The LGA, which represents more than 350 councils in England, estimate savings of £1.5billion could be made by reducing the running costs of the seven Whitehall departments which local authorities have to deal with.

Councils are forced to spend an extra £400 million to comply with centrally-imposed “data burdens”, such as performance indicators, and another £1billion is being wasted through “unnecessary policy activity”.

A saving of £1.5 billion could be made by giving councils more choice over spending and more responsibility for their own affairs could.

Things need to be done better and cheaper Margaret Eaton Local Government Assocation

The LGA said these and other savings could pay for 300,000 school places, 175,000 personal care packages and 36,000 miles of road resurfacing.

Chairman Margaret Eaton said:

“We need a bonfire of red tape so that taxpayers’ money can be freed up to protect frontline services.

“Things need to be done better and cheaper. If we are to repay the large public debt, we simply cannot afford the same amount of excessive central activity and control of local services.

“We need to make sure there is no unnecessary bureaucracy and that the vast array of different bodies providing public services do not waste money by duplicating the work others already carry out.”

The LGA also pointed out that central government staff numbers have risen by 21% over the past ten years, with the number of permanent staff at the Department of Communities and Local Government growing by 10% last year alone.

Liberal Democrat spokeswoman Julia Goldsworthy said:

“The government has tied local authorities in knots with unnecessary targets and red tape.

“Labour and the Tories have always presumed the best in central government and the worst in local government – it should be the other way around.

“The Liberal Democrats want to free councils from the expensive straitjacket of Whitehall rules and targets.”