London mayor calls for tax-raising powers

London mayor Boris Johnson is to ask for new powers to raise taxes on property and tourism in the capital as part of a push to give more power to English cities.

The proposals are contained in a report by the London Finance Commission, a cross-party group set up by Johnson last year, which has been leaked to the Guardian newspaper.

The report says revenue streams amounting to more than £12bn in 2013-14 should be handed over to London's control with a corresponding pound-for-pound reduction in the Treasury's grant to London.

It says: 'The full suite (council tax, business rates, stamp duty, land tax, annual tax on enveloped dwellings and capital gains property disposal tax) should be devolved to London government.'

The report also says 'a tourism tax would seem to have particular potential in London', with the money raised through this reinvested into London's tourism facilities. It says the yields from this and a proposed environmental tax would be offset by corresponding reductions in central government grant to London.

Pat Sweet | Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

View profile and articles

0
Be the first to vote

Rate this article

Related Articles
Subscribe