Osborne 'must devolve taxes to London'
The Chancellor must adhere to a consistent and competitive tax regime, a leading business group has said.
Ahead of the Autumn Statement today,
London Firsthas published a report on aspects of the UK tax regime's impact on the London economy.
It is calling for the devolution of property taxes to London's government, matched pound for pound by a reduction in grant, to enable the system to be better designed to meet London's needs.
The report -
Consistency and Competitiveness: Essential steps towards a UK tax regime that supports economic growth- also calls for the restoration of the top rate of income tax to 40%, on grounds of competitiveness and yield.
London Firstwants ""a clear public commitment from government that the Tax Code will be applied consistently, arbitrary policy changes will not be implemented and compliant companies will be recognised, by government at least".
London is home to high quality business clusters in financial, professional and creative services, which stimulate economic activity across the UK economy. London represents 13% of the UK’s population, provides 16% of jobs and accounts for 22% of total UK GVA.
This disparity between jobs and value-add is a function of the city’s high level of productivity and a result of a complex interaction between physical capital, human capital and the concentration of economic activity.
