Latest news with #DevolutionBill
Yahoo
16-07-2025
- Business
- Yahoo
Analysis finds devolved tax powers could add £4 billion for local services
Allowing councils to administer and retain taxes generated locally would boost funding for services by more than £4 billion in many areas and 'supercharge' economic growth, a new analysis suggests. 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. Deputy Prime Minister Angela 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. The guidance recently published alongside the 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 37 CCN councils, including top tier shire authorities and unitaries, serve about 45% of the population and contributed almost £390 billion in national tax receipts in 2022/23, the report said. This level of county revenues amounted to 44% of the revenue total for England of £891.3 billion, rising to 57% if London's contribution is not taken into account. This includes contributions of 62% in income tax and and 55% in VAT. The analysis found that expenditure in county areas totalled £273 billion, amounting to a net benefit to the exchequer of £113.6 billion a year. The report said allowing authorities to retain 'better than expected' income tax growth could raise £3.8 billion in county areas annually and would 'dramatically incentivise' local job creation. Retaining half of stamp duty on new homes could provide about £237 million and encourage councils to deliver more housing, the analysis showed, while a tourist tax set at £2 a night could generate about £209 million in extra annual revenue. If county and unitary councils were granted 10% of funds from the apprenticeship levy generated locally, councils could direct an estimated £120 million a year to skills and growth. The report concluded that these measures combined could raise about £4.4 billion in county areas, which equates to 10% of an average budget for these authorities, while nationally the figures are about £8.9 billion a year. Richard Roberts, CCN's economic growth spokesman, said the research 'warrants serious consideration from government and from existing mayors'. He added: '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. 'More pressingly, there is the shared local and central government need to increase growth, create jobs and build homes alongside the urgency to invest in local economic growth services and infrastructure. 'The potential revenue generated from the fiscal devolution options modelled in this report would be a game-changer for local areas, allowing them to invest in growth and incentivise areas to maintain productivity gains. 'Whilst there will still be a need for central government to a play a redistributive role to ensure equity across regions, we have long argued counties are the backbone of the economy. 'Now is the time for Government be bold and ambitious and think about unleashing the potential of counties.' London Councils, which represents the 32 boroughs in the capital, said authorities' current reliance on council tax and government grants perpetuates unsustainable financial stress. Claire Holland, chairwoman of London Councils, said: 'Devolving more fiscal powers to a local level is crucial for fixing this broken system and ending the crisis in council finances. 'With more autonomy and flexibility – such as powers to introduce an overnight accommodation levy – we would be in a much stronger position to respond to our communities' needs and encourage economic growth. 'London is the powerhouse of the UK economy, but still faces immense challenges around productivity, unemployment, and poverty, as well as an enormous £500 million funding gap in boroughs' budgets. 'Fiscal devolution could help us tackle these issues and maximise London's contribution to the country's future prosperity.'
The Herald Scotland
10-07-2025
- Business
- The Herald Scotland
Government promises community control as ‘new dawn' Bill introduced
Deputy Prime Minister Angela Rayner said the Bill provides a 'new dawn of regional power' that will 'rebalance decade old divides'. Among a range of measures, the Bill would introduce a 'community right to buy' through which communities have the first option to purchase local assets such as pubs and shops that are placed on the market. Clauses in commercial leases which enforce 'upward only' rent reviews will be banned in a bid to keep small businesses afloat, helping to end the 'blight of vacant high streets' and anti-social behaviour. The Bill would also establish a new requirement for councils to put in place 'effective neighbourhood governance' aimed at giving local people a direct say in decisions about their areas. 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. In a push to restore taxpayers' trust in council spending, the Government has also pledged to address long delays in the process of local authority financial audits. As previously announced, a Local Audit Office will be established to 'increase transparency, simplify and streamline the system'. Ms Rayner said: 'We were elected on a promise of change, not just for a few areas cherry-picked by a Whitehall spreadsheet, but for the entire country. 'It was never going to be easy to deliver the growth our country desperately needed with the inheritance we were dumped with. 'But that's why we are opting to devolve not dictate and delivering a Bill that will rebalance decade old divides and empower communities. 'We're ushering in a new dawn of regional power and bringing decision making to a local level so that no single street or household is left behind and every community thrives from our Plan for Change.' Local government minister Jim McMahon said power concentrated in Westminster and Whitehall has left councils 'frustrated and diminished'. He added: 'This failed approach has held back growth across our country for far too long. 'Local people see this in the job market, on the high street and in their own household security and prosperity. 'Devolution begins the work of fixing that, with this Bill delivering freedom to local leaders to make decisions for their local areas in partnership with local communities, unleashing more growth and more opportunities for people as part of our Plan for Change.' Kevin Hollinrake, shadow communities secretary, accused the Government of centralising rather then distributing powers. He said: 'Labour's so-called Devolution Bill is, in reality, a brazen power grab by Angela Rayner and Whitehall. 'It hands her 90 sweeping 'Henry VIII' powers, stripping authority from local communities and centralising control in Westminster. This is not devolution, it's Labour gerrymandering under the guise of reform. 'Labour's track record speaks for itself: rushed, top-down reorganisations of local government, imposed against the will of elected representatives; higher council tax burdens on residents; and a consistent erosion of neighbourhood planning and localism. 'They are weakening the role of local councillors and transferring key decisions to distant regional bodies, leaving residents with less say over their own communities. 'We believe in genuine devolution: empowering local people, not dictating from Whitehall. 'Communities deserve a voice, not another expensive Labour restructure that sidelines local priorities and inflates costs for taxpayers.' Responding to the Bill, Louise Gittins, chairwoman of the Local Government Association, said: 'It is critical that the full breadth, diversity and capability of local government is recognised and all councils are enabled to play a meaningful role as partners and, where appropriate, as part of strategic authorities in driving growth, improving services, and improving the lives of our residents. 'Councils across the country are deeply invested in and vital to the success of English devolution. We will respond in more detail on behalf of local government when we have analysed the Bill further.' Second-tier district councils have previously criticised the Government's plan to give the secretary of state powers to impose new local government structures across areas. Sam Chapman-Allen, chairman of the District Councils' Network (DCN), said: 'DCN supports devolution. District councils passionately seek a sea change to put power much closer to communities. However, this Bill falls well short of doing that. 'The Bill's devolution label doesn't match the contents. Power isn't flowing downwards. Rather than empowering local leaders, there are substantial new powers for the Secretary of State to direct local government. Many of the new responsibilities for strategic authorities are existing powers being reshuffled from other local bodies.' 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. Mr Hollinrake accused the Government of changing the mayoral electoral system to benefit Labour. He said: 'Faced with waning public support, Keir Starmer's Labour is now trying to rig the system, shifting the electoral goalposts and imposing a discredited voting system to cling to influence in local government. 'It's a blatant attempt to entrench Labour's grip, not empower local democracy.' But the plan has been welcomed by MPs and campaigners, who say that the current voting system is not fit for purpose. Alex Sobel, chairman of the All-Party Parliamentary Group for Fair Elections, said: 'Since the Tories imposed first-past-the-post on mayoral elections, it has failed to fairly represent voters, undermined the ability of mayors to speak for their whole communities, and therefore eroded trust in politics. 'By committing to changing this, the Government has wisely taken a step in the right direction, but first-past-the-post is just as flawed when it comes to general elections. 'The Government should set up a national commission on electoral reform to find a fair, representative way forward.'
BBC News
08-04-2025
- Politics
- BBC News
Who is independent candidate for Weca mayor Ian Scott?
On Thursday 1 May voters in the West of England will decide on their next regional can find more information about the election and the candidates West of England Combined Authority (Weca) is a local authority encompassing the council areas of Bristol, Bath and North East Somerset (BANES) and South Gloucestershire. The Authority is led by the West of England Mayor. Independent candidate Ian Scott Mr Scott is a current councillor representing the South Gloucestershire ward of was originally elected as a Labour candidate, but now sits as an independent after a falling out with the party when he didn't make Labour's Weca Mayoral subsequently accused Labour of ageism and sexism, and is now standing as an independent has disputed his claims, and said Mr Scott didn't turn up for his selection interview. The party added that he was barred for standing against the Labour candidate, as per its rules. He says experience 'is a good thing' Mr Scott was born in North Somerset and has lived in Filton since 1988. He says he has 40 years of political experience, including 12 years as a policy advisor to both Bristol City Council and South Gloucestershire Council. He has previously worked for the Post Office and is currently a regional union representative. He has served on both Filton and South Gloucestershire Councils and has extolled the virtue of his 61 years saying "experience is a good thing". Weca should get more funding, he says Mr Scott believes that the West of England Combined Authority has been "short-changed" by the government's recent Devolution Bill. His policies include demanding money back from central government to spend on local services in Bristol, Bath and North East Somerset and South Gloucestershire. He says he's supporting improved bus routes and fares, new local train services and "more respect for car users". He has no party financial backing Mr Scott has no party financial backing and is paying the £5,000 entrance fee out of his Post Office pension. He needs to receive at least 5% of the vote in order to get his deposit back.
