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James Milne

I think most proponents of these sorts of changes suggest them alongside changes to how councils are funded. It's not common knowledge, but a huge amount of council funding already comes in the form of central govt grant. Devolution could be supported by granting other tax raising powers.

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Steve Jary

Yes, but what will it be, if not a property tax? I can’t see local income taxes being sellable and they’d hit the same problem - poorer areas having to charge higher marginal rates.

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1 прямых ответов · 5 сообщений

James Milne

Only if all the council's income was expected to come from their own tax takings, which already isn't the case; council tax only funds about 25% of local authority expenditure according to the Office of Budget Responsibility: obr.uk/forecasts-in...

obr.uk
Ответ для James Milne
Steve Jary

I know that! But 25% in their control is quite a lot to lose control of. My point was that devolution implies an *increase* in local control of revenue. And I don’t see how a flat rate, set by the centre, allows for that.

Ответ для Steve Jary
Steve Jary

And this all needs to be joined up with the social care proposition, given that it is the bulk of councils’ spend. I’m not criticising any of this. It is the right thing to do. But I want it to work.

Ответ для Steve Jary
James Milne

Yes absolutely. Totally get that. If the idea was for this kind of property tax to replace council tax as a straight swap, it'd be totally possible to allow councils to set the rate rather than have it set centrally.

Ответ для James Milne
James Milne

I guess my point is that whatever local taxes are raised, there's always going to have to be some contribution from central govt (that essentially redistributes funds to struggling areas) if we don't want people in less affluent areas to have to pay more.