Councils wanting fiscal devolution must turn their back on the system of redistribution, the former chief executive of Birmingham City Council has warned. Stephen Hughes said the incentives that come with fiscal devolution would be 'undermined' if central government continued to redistribute funding. Admitting his point of view was 'slightly controversial' at the communities and local government committee's latest hearing in its fiscal devolution inquiry, Mr Hughes said: 'The current system does not work. We have lost connection between the distribution of grant and any underlying logical basis.
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