Fiscal devolution would enable local authorities to raise £8.9bn a year for local services, a new report commissioned by the County Councils Network (CCN) has found.
The report also estimates that granting county and unitary councils the powers to administer and retain taxes would generate a yearly £4.4bn investment pot for top tier councils.
Commenting on the report, Cllr Richard Roberts, economic growth spokesperson for the CCN, said this would not be about new taxes but instead is about ‘using existing taxes more effectively’.
Written by Grant Thornton UK, the report calculates that giving county areas the ability to retain income tax growth could raise £3.8bn a year, while allowing them to retain 50% of stamp duty on new homes would raise £237m per annum.
The introduction of a flat-rate tourist tax would generate around £209m in extra revenue in county areas per year and enabling them to keep 10% of Apprenticeship Levy funds would raise £120m a year.
‘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,’ Cllr Roberts said.
‘Now is the time for government be bold and ambitious and think about unleashing the potential of counties.’
