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London should have same tax-raising powers as Holyrood - mayoral candidate London should have same tax-raising powers as Holyrood – mayoral candidate
(34 minutes later)
A referendum to give London broadly the same tax-raising powers and independence as the Scottish parliament has been proposed by Gareth Thomas, MP for Harrow West and a Labour London mayoral candidate. A referendum to give London broadly the same tax-raising powers and independence as the Scottish parliament has been proposed by Labour mayoral candidate Gareth Thomas.
Speaking before a mayoral hustings held by the Observer, Thomas said London should have the same powers over income tax as Holyrood and devolved control over the housing market and property taxes, the health service and the minimum wage. Speaking before a mayoral hustings held by the Observer, the MP for Harrow West said London should have the same powers over income tax as Holyrood and devolved control over the housing market and property taxes, the health service and the minimum wage.
The Scottish parliament can currently vary the rate of income tax by up to three percentage points, but from April 2016 will be able to set all rates of income tax and vary the thresholds. The Scottish parliament can currently vary the rate of income tax by up to three percentage points, but from April 2016 will be able to set all rates and vary the thresholds.
Critics will argue that a near declaration of London’s economic independence from the rest of the UK would damage the country overall, but Thomas claims that while the city has greater wealth than any other region or nation, it also has some of the worst deprivation, stubborn levels of child poverty, and the most severe housing crisis. London does not currently have the powers to tackle these challenges. Critics will argue that a near declaration of London’s economic independence from the rest of the UK would damage the country overall, but Thomas claims that while the city has greater wealth than any other region or nation in the UK, it also has some of the worst deprivation, stubborn levels of child poverty, and the most severe housing crisis. London does not have the powers to tackle these challenges.
In total, the city would receive an extra £13bn in income, according to figures prepared by the Office for Budget Responsibility. Thomas said his proposals would also give London a far “greater base to prudentially borrow against, allowing for serious and visionary local planning and delivery”.In total, the city would receive an extra £13bn in income, according to figures prepared by the Office for Budget Responsibility. Thomas said his proposals would also give London a far “greater base to prudentially borrow against, allowing for serious and visionary local planning and delivery”.
A London devolution bill drawn up by Thomas proposes that a referendum be held in September 2016, following the mayoral elections, for Londoners to vote on the proposals, which would effectively turn London into a city state. A London devolution bill drawn up by Thomas proposes that a referendum be held in September 2016 for Londoners to vote on the proposals, which would effectively turn London into a city state. The mayoral election will be held in May that year.
His proposals are for the mayor to have the power to vary income tax, as well as control over revenue from stamp duty, council tax, business rates, capital gains tax and the ability to introduce a tourist tax. Thomas’s proposals are for the mayor to have the power to vary income tax, as well as control over revenue from stamp duty, council tax, business rates, capital gains tax and the ability to introduce a tourist tax.
All the London mayoral candidates have called for a devolution of further powers but Thomas has set out the most drastic proposals. He is currently thought to be well behind the three frontrunners: Tessa Jowell, David Lammy and Sadiq Khan. Transport journalist Christian Wolmar is also standing. All the Labour London mayoral candidates have called for a devolution of further powers but Thomas has set out the most drastic proposals. He is currently thought to be well behind the three frontrunners: Tessa Jowell, David Lammy and Sadiq Khan. Diane Abbott and the transport journalist Christian Wolmar are also standing.
Many of the proposals were set out in the London Finance Commission set up by the current mayor, Boris Johnson, and chaired by Professor Tony Travers. Many of the proposals were set out in the London finance commission set up by the current mayor, Boris Johnson, and chaired by Prof Tony Travers.
The government at present seems to be focusing on greater devolutionary powers for northern cities as opposed to London.The government at present seems to be focusing on greater devolutionary powers for northern cities as opposed to London.
Thomas said the London mayor should also have powers to promote higher educational standards, control skills and employment training budgets, as well as sit on the board of the Bank of England’s Prudential Regulation Authority, which supervises banks, building societies, credit unions, insurers and major investment firms.Thomas said the London mayor should also have powers to promote higher educational standards, control skills and employment training budgets, as well as sit on the board of the Bank of England’s Prudential Regulation Authority, which supervises banks, building societies, credit unions, insurers and major investment firms.