Allowing South East councils to keep 11% of taxes instead of central government grants could provide an extra £3.3bn a year, a report claims.
Devolving property taxes could make councils self-sufficient and would strengthen the link between taxes and local decisions for voters, the report by Local Government Futures for South East England Councils (SEEC) and South East Strategic Leaders says.
It would also provide essential funds to support economic growth in the 'engine room of the UK economy' and services that meet the needs of the South East’s 9.8m population.
SEEC chairman Cllr Gordon Keymer said: ‘Council tax is just 4.9% of all taxes paid in the South East and covers only a tiny proportion of costs, leaving councils dependent on central government grants. This is bad for voters who see no link between what they pay and local infrastructure or services.
'With £80bn profit for the Treasury over 10 years, the South East is the UK’s most profitable economy.
'We need some of the devolution already offered to Scotland so we can use part of our profitability to invest in even greater economic success for the UK.'
