The Mayor of London Sadiq Khan has reconvened the London Finance Commission to consider tax and expenditure in London, particularly after the EU referendum result and the process of devolution. The most significant development in the latter is a proposed change to business rates, under which they will be retained entirely by local governments by 2020 but subject to equalisation measures.
The central arguement to the report is that a broader tax base with stronger fiscal controls will support the delivery of more integrated and efficient services and increased infrastructure investment, while allowing for the reform of individual taxes.
Camden Town Unlimited CEO Simon Pitkeathley supporting the business case for London’s government to have stronger fiscal powers. “Handing wider fiscal responsibilities to the GLA would naturally bring decision making on taxing and spending closer to the capital’s residents and businesses. In the case of the latter, we would cautiously welcome further devolution.”