The capital should eventually be given fiscal powers over VAT and income tax, the chair of the London Finance Commission has argued.

Speaking at today's London Summit, Professor Tony Travers called for the capital to be given a ‘more radical devolutionary settlement' to make its relationship with Westminster more like that of Scotland and Wales.

Prof Travers' reformed commission, which is due to publish its final report in January, is expected to stop short of calling for this immediately.

Instead, the commission will likely demand the full devolution of all property-related tax.

‘London would run stamp duty better,' Prof Travers told delegates.

He added the proceeds of this should be for the whole of London government – both City Hall and the boroughs – though he admitted this would need more formal governance arrangements.

Responding to a call by the chief executive of the Chartered Institute of Public Finance and Accountancy, Rob Whiteman, for a cull in the number of London councils, Prof Travers said British local authorities were already the ‘largest in the world'.

‘The idea that they need to be bigger is very strange,' he added.