Local authorities should be empowered to raise half of their income from local taxes as part of plans to boost UK economic growth, a report by the TaxPayers' Alliance and Institute of Directors has recommended.

An 18-month study of potential growth plans by a commission formed by the two organisations has ended in a series of recommendations, including a call to standardise the income tax rate at 30% - rather than use a sliding scale – and to hike up the personal tax allowance to £10,000 annually to boost spending powers for those on lower incomes.