This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.guardian.co.uk/uk/2013/may/15/boris-johnson-london-tax-powers
The article has changed 7 times. There is an RSS feed of changes available.
| Version 5 | Version 6 |
|---|---|
| Boris Johnson's call for tax-raising powers for London boosted by report | Boris Johnson's call for tax-raising powers for London boosted by report |
| (4 months later) | |
| The mayor of London, Boris Johnson, has expressed confidence that the capital could gain powers to raise property and other new taxes while he remains in office. | The mayor of London, Boris Johnson, has expressed confidence that the capital could gain powers to raise property and other new taxes while he remains in office. |
| Backing a report, published on Wednesday, that calls for greater financial freedom for London in order to improve the city's infrastructure, the mayor suggested that no reasonable person would be able to refuse the demands. It recommends that London should be given complete control over property taxes, including council tax, stamp duty and business rates, as well as the ability to levy new taxes such as a tourist tax. | Backing a report, published on Wednesday, that calls for greater financial freedom for London in order to improve the city's infrastructure, the mayor suggested that no reasonable person would be able to refuse the demands. It recommends that London should be given complete control over property taxes, including council tax, stamp duty and business rates, as well as the ability to levy new taxes such as a tourist tax. |
| Johnson said what he was asking for was "not a revolution, not an attempt to create a city state out of London. It's a sensible and moderate attempt to face the challenges London has." | Johnson said what he was asking for was "not a revolution, not an attempt to create a city state out of London. It's a sensible and moderate attempt to face the challenges London has." |
| Those challenges were described as "colossal pressures" on housing, schools, transport and other infrastructure, with London's population set to grow to 9 million by 2020. The Raising the Capital report drawn up by the mayor-appointed London Finance Commission, says the full suite of property tax revenue streams, including council tax, business rates and stamp duty, should be devolved to London. The capital's government would also be responsible for setting council tax revaluations and banding, although Johnson was coy about the prospects of making changes in this area, which would likely prove unpopular with voters. Johnson also said he was not minded to introduce new taxes despite the commission, chaired by local government expert Tony Travers, raising the prospect of introducing tourism and environmental taxes. | Those challenges were described as "colossal pressures" on housing, schools, transport and other infrastructure, with London's population set to grow to 9 million by 2020. The Raising the Capital report drawn up by the mayor-appointed London Finance Commission, says the full suite of property tax revenue streams, including council tax, business rates and stamp duty, should be devolved to London. The capital's government would also be responsible for setting council tax revaluations and banding, although Johnson was coy about the prospects of making changes in this area, which would likely prove unpopular with voters. Johnson also said he was not minded to introduce new taxes despite the commission, chaired by local government expert Tony Travers, raising the prospect of introducing tourism and environmental taxes. |
| The Treasury has previously rejected calls for stamp duty to be devolved but the mayor expressed confidence that it would sign up to the proposals, preferring to point out that it has partially devolved business rates. Johnson, who said the current arrangements had caused a "democratic deficit" in London and across England, when compared with the rest of the UK, raised the prospect of candidates in the next mayoral election competing over detailed tax and spending plans. | The Treasury has previously rejected calls for stamp duty to be devolved but the mayor expressed confidence that it would sign up to the proposals, preferring to point out that it has partially devolved business rates. Johnson, who said the current arrangements had caused a "democratic deficit" in London and across England, when compared with the rest of the UK, raised the prospect of candidates in the next mayoral election competing over detailed tax and spending plans. |
| He said the enhanced powers would incentivise the London government to focus on growth. At the outset, if the plans were implemented, there would be a corresponding reduction in the Treasury's grant to the capital. But thereafter, London's government would gain – or lose out – according to how high it set taxes and what growth was achieved. On London's current reliance on central funding compared with major cities in other countries, Johnson said: "For too long London has been an economic giant, a political giant but a fiscal infant … It's high time London was treated in a more grown up, a more mature way, as a great city in the way other great cities are. | He said the enhanced powers would incentivise the London government to focus on growth. At the outset, if the plans were implemented, there would be a corresponding reduction in the Treasury's grant to the capital. But thereafter, London's government would gain – or lose out – according to how high it set taxes and what growth was achieved. On London's current reliance on central funding compared with major cities in other countries, Johnson said: "For too long London has been an economic giant, a political giant but a fiscal infant … It's high time London was treated in a more grown up, a more mature way, as a great city in the way other great cities are. |
| The report did not look at the cost to London of administering the taxes but Travers said they had proved to be manageable in Scotland. | The report did not look at the cost to London of administering the taxes but Travers said they had proved to be manageable in Scotland. |
| Our editors' picks for the day's top news and commentary delivered to your inbox each morning. | Our editors' picks for the day's top news and commentary delivered to your inbox each morning. |