Angela Rayner 'backing local stealth taxes drive': Deputy PM and mayors push for powers to raise huge new revenues from struggling Brits
The Deputy Prime Minister is said to be encouraging local elected political leaders to put pressure on Chancellor Rachel Reeves to give them control over taxes collected locally.
Ms Rayner recently said she wanted 'more push' towards fiscal devolution as part of the Government's pledge to transfer central decision making to local areas.
The English Devolution White Paper published last year states that mayors could submit proposals for new powers, such as fiscal devolution, which the government is obliged to consider.
Guidance recently published alongside the Devolution and Community Empowerment Bill earlier this month stipulates that new strategic authorities can pilot devolved powers to make it 'easier to deepen devolution over time'.
The Times reported that one area being looked at is introducing widespread taxes on tourism, but a source told the paper that was 'the tip of the iceberg of what mayors want', with mayors looking at controlling income tax, stamp duty and business rates.
The source added: 'There are far more fiscal levers to pull, and ministers understand this is the start and not the end.'
Meanwhile councils are also straining at the bit to get more spending powers, with a new report claiming allowing them to administer and retain taxes generated locally would boost funding for services by more than £4 billion in many areas and 'supercharge' economic growth.
The report argues that new fiscal arrangements which enable authorities to a proportion of revenue from income tax, stamp duty and the apprenticeship levy alongside a new tourist tax could prove transformational and support the delivery of the Government's priorities.
The County Councils Network, which commissioned the report, stressed the proposals do not advocate tax rises and acknowledged that a process of redistributing tax revenue would need to be established to address regional variations in the amounts generated.
The English Devolution and Community Empowerment Bill, which had its first reading in the House of Commons last week, includes what is described as 'radical reset of local government' and protections for local businesses, as well as measures to enable strategic collaboration across wider areas on issues such as transport.
As part of boosting the powers available to regional mayors, they will be responsible for developing local economic plans and gain control over licensing for e-bikes and planning decisions to 'set the direction of growth'.
Mayors will also be able to impose 'development orders' to speed up developments, while new 'mayoral development corporations' are intended to streamline implementation and attract investment.
The Government has also set out plans to scrap the first-past-the-post voting system for mayoral elections, reversing a change made by the previous Conservative government.
The legislation reinstates the 'preferential' voting system, which enables voters to indicate multiple candidates in order of preference, with these choices weighted or used as contingency votes.
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