UK sets out fiscal devolution plan to boost economic growth
EWU•England’s regional mayors will keep 20% of business rates revenue from next year and receive a share of income tax from 2028. The government also plans to let them retain all locally raised business rates by the end of the decade.
1. More local tax revenue
England’s regional mayors will be able to retain 20% of business rates revenue from next year and receive a share of income tax from 2028. They will also be able to charge a levy on overnight visitor stays from 2028.
2. Funding local investment
Finance minister John Healey said the funding streams could support investment in local infrastructure. He said he wanted mayors to retain all business rates revenue raised locally by the end of the decade. The reforms aim to encourage local authorities to pursue policies that generate additional tax revenue.
