Heather Jameson 21 March 2019

Think tank suggests introduction of local income tax

Think tank suggests introduction of local income tax image

Local income tax would be the best option for fiscal devolution if the Government wanted to hand more powers to local authorities, the Institute for Fiscal Studies (IFS) argued today.

According to calculations from the institute, a 3% local income tax levy on all tax bands would raise around £19bn – around 40% of councils’ core budgets – would incentivise inclusive growth and give the sector a buoyant revenue stream that keeps up with inflation.

However, a devolved local income tax would require a system to redistribute revenue between councils to avoid large disparities.

Variable income tax rates across different localities would also be problematic as HM Revenue & Customs does not always have up-to-date records of where people live.

IFS director Paul Johnson said: ‘Business rates and council tax cannot go up fast enough to keep up with adult social care.’

IFS researcher Tom Harris added: ‘If the Government does not devolve significant new revenues to councils in the coming years it will either have to raise more revenues centrally to give to councils as grants, centralise some of their spending responsibilities or accept further cutbacks in local services.’

For an analysis of the report by MJ editor Heather Jameson click here (£)

Overcoming the barriers to Commercial Card use image

Overcoming the barriers to Commercial Card use

Want to reap the benefits of Commercial Cards but coming up against some challenges? James Sykes, Head of Commercial Cards, Lloyds Bank and David Legg, Head of Corporate Card Products, Lloyds Bank, discuss how the payments industry is helping organisations unlock their true value.
SIGN UP
For your free daily news bulletin
Highways jobs

Traffic Enforcement Manager

Haringey London Borough Council
£40,869 - £43,860
As part of a major service transformation, Haringey is seeking to recruit to a new number of new positions. Haringey, London (Greater)
Recuriter: Haringey London Borough Council

Team Manager – Assessment (Children’s Services)

Haringey London Borough Council
£50,826 - £53,928
We are investing in creating a better borough for all our residents and bettering the lives of... Haringey, London (Greater)
Recuriter: Haringey London Borough Council

Chief Fire Officer / Chief Executive

Avon Fire & Rescue
 £148,238 per annum
The new CFO/CE will need to demonstrate a clear understanding of the issues facing the Fire and Rescue Service - both within... North Somerset
Recuriter: Avon Fire & Rescue

Refuse Driver

Royal Borough of Greenwich
£30032 - £31610 per annum + (amount shown is salary plus allowances)
Refuse Driver (LGV Chargehand Driver)(starting total pay of £30,032 - this is made up of the base grade salary plus contractual overtime and allowance England, London, Woolwich
Recuriter: Royal Borough of Greenwich

Corporate Director (Environment, Communities & Leisure)

Gedling Borough Council
Up to £83,424 (pay award pending)
As one of our two Corporate Directors reporting to the Chief Executive to form our Senior Leadership Team your... Gedling, Nottingham
Recuriter: Gedling Borough Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue