Devolving housing, income and tourism taxes to counties could raise more than £4bn, report finds
Devolving housing, income and tourism taxes to England’s counties could raise more than £4bn a year to invest in local services, a new report has found.
The research from Grant Thornton UK, commissioned by the County Councils Network (CCN), argued that giving fiscal devolution powers to county and unitary councils could be “transformational”.
This would not take the form of tax rises, the report said, but would instead decentralise a proportion of locally-raised revenue, giving council leaders greater flexibility to invest in growth, create jobs and build homes.
Currently, England is one of the most centralised countries in the world when it comes to tax intake.
The report for the CCN, which includes North Yorkshire and the East Riding, suggested that authorities could retain half of their stamp duty, introduce a flat £2 tourism tax and keep part of the apprenticeship levy.
The CCN’s Coun Richard Roberts said: “Today’s report from Grant Thornton shows the art of the possible for fiscal devolution and we believe these proposals warrant serious consideration from government and from existing mayors.
“There has never been a better time to consider empowering local areas with fiscal devolution and let’s be clear: this is not about new taxes for local residents and businesses.
“It's about using existing taxes more effectively, allowing local areas who understand what’s needed to drive growth to invest to that end.”
Only last week, Deputy Prime Minister Angela Rayner said she wanted to see “more push” towards fiscal devolution for councils when announcing the devolution bill in Parliament.
It comes after Yorkshire’s mayors had a meeting with Chancellor Rachel Reeves about granting them visitor levy powers earlier in the year.
Both West Yorkshire Mayor Tracy Brabin and York and North Yorkshire Mayor David Skaith said they would like to use the powers to boost investment in Leeds, York and Scarborough.
However following the discussions in January there has been little movement, with no announcement in the Spring Statement or Spending Review.
The Yorkshire Post understands that while Ms Rayner is pushing Ms Reeves for greater fiscal devolution, the Treasury wants to retain the powers in Whitehall.