EXCLUSIVE: Treasury civil servants considering how income tax devolution could work

By Dan Peters | 22 May 2024

Treasury officials are considering how the idea of devolving powers to local government to retain a share of income tax revenue could work, The MJ understands.

The Government has publicly said it has ‘no plans to hypothecate revenue from national taxes to local or combined authorities’ because the current system allowed ‘funding priorities to be more closely aligned with need, rather than depending on where the revenue is raised’ while shadow chancellor Rachel Reeves is understood to be cautious about handing tax powers to councils.

Want full article access?

Receive The MJ magazine each week and gain access to all the content on this website with a subscription.

Full website content includes additional, exclusive commentary and analysis on the issues affecting local government.

Already a subscriber? Login

Whitehall Finance London Councils Politics Policy Devolution Combined Authority Spending Review Fiscal Freedom General Election Fiscal devolution New Local Michael Gove