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.
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