FINANCE

A taxing problem

Heather Jameson looks at the latest report from the IFS’s Local Government Finance Commission, which suggests a local income tax would be the best option for fiscal devolution.

Local government finances are broken. Plans to fully devolve business rates, outlined in the Local Government Finance Bill, were stymied when the decision to call a snap election in 2017 halted legislation just before it received Royal Assent.

Since then, Brexit has suspended further legislation, leaving local government funding in limbo.

Heather Jameson

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