More powers for London

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The Mayor of London, Sadiq Khan, has re-formed the London Finance Commission (LFC) to help the Mayor and London’s local authorities improve the tax and public spending arrangements for London in order to promote jobs, growth and greater equality. 

Currently, New York City and a number of other large international cities have significantly more control over the collection and spend of taxes than London has. Some people think London government should have more control over its taxation in order to make public spending decisions that fit local priorities. Others think that the national government should control taxes and spending so finances can be distributed in the interests of the whole country.

Do you think that London government should have more control of taxes and spending on public services in London or not, and why? Are there particular taxes (council tax, stamp duty, income tax etc) that you think London should retain more of, and why? How do you think more local control of finances might affect you?
 

The discussion ran from 05 October 2016 - 05 January 2017

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Comments (59)

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Clearly Brexit is on a lot of Londoners minds especially as we voted to stay in the EU. It does change the game and given our contribution through taxation which helps other parts of the Country we have to consider our own interests as well...

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Clearly Brexit is on a lot of Londoners minds especially as we voted to stay in the EU. It does change the game and given our contribution through taxation which helps other parts of the Country we have to consider our own interests as well. We have helped those parts which voted Brexit and you have to accept responsibility for the outcomes and as no doubt the Service Sector will decline over time and the cash pot will be smaller we should be able to have greater powers to decide on our own priorities. That does not mean like the Brexiters we pull up the drawbridge on the rest of the Country but it does mean that others decisions should not adversely affect our own position. So we need the power to decide how what we earn and contribute is allocated as we see fit.

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John, you said here that Brexit voted to Stay in The EU...I think that the opposite apples, The Referendum result was to Leave the EU and Govern Ourselves Again...but there was no suggestion of 'Brexit', a new word coined for the result...

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John, you said here that Brexit voted to Stay in The EU...I think that the opposite apples, The Referendum result was to Leave the EU and Govern Ourselves Again...but there was no suggestion of 'Brexit', a new word coined for the result, but actually incorrect, and we have to wait and see what "Leaving The EU" means, providing it incorporates the aims of the Leave Campaign, the biggest decision that the people of the UK have had in Centuries, and it will last for centuries more before any further change.....if it is carried out properly...!

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I think when John says we voted to stay in EU he was referring to the people of London and uses that as a basis for a number of points including the imposition of a Brexit result that not only was not supported by London but that much of...

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I think when John says we voted to stay in EU he was referring to the people of London and uses that as a basis for a number of points including the imposition of a Brexit result that not only was not supported by London but that much of the cost of such a vote in terms of subsidising the regions (since Londons economy is a driver for the rest of the county) will also be shouldered by London. As the post Brexit economy contracts London needs to protect what it has if it is to continue being a significant global player. That means that resources (and thereby the taxes to pay for them) need to be addressed locally not nationally. A tax regime for London alone is therefore desirable

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London should be able to raise its own taxes like New York. There should be a special "London Tax" for people who live outside the M25 but work in London because of the higher salaries they can earn. People who live in Central London...

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London should be able to raise its own taxes like New York. There should be a special "London Tax" for people who live outside the M25 but work in London because of the higher salaries they can earn. People who live in Central London within the circle line there should be no taxes because they pay their taxes on higher scale already. Those that live within the Circular roads and the circle line should pay a tax for working in the Centre. Those that live within the M 25 and the circular roads should pay a higher tax for working in the inner zones. These taxes should be allocated to the welfare of London and only London. This should not be touched by the Mayor of London or the Govt. for any other purpose.

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Northern Ireland population 1.81M, Wales population 3.06 M, Scotland 5.29M, Greater London population 8.63M.
The first 3 all have greater tax raising/ keeping and legislative powers than London. It is time for a change. The revenue stream...

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Northern Ireland population 1.81M, Wales population 3.06 M, Scotland 5.29M, Greater London population 8.63M.
The first 3 all have greater tax raising/ keeping and legislative powers than London. It is time for a change. The revenue stream to London should be on the same basis at to Scotland and similar legislative powers should also be given.

London used to lead the Country with innovative legislation to meet its own needs, but that seems to have disappeared. Britain needs a strong London, particularly if there is a hard Brexit. Act now to get bring about change.

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London has one mayor and 25 assembly members with not much power. Its population is larger than Ireland's, Finland's, Denmark's or Bulgaria's (which have 14, 13, 13, and 17 MEPs; London has eight), yet Denmark's parliament has 175 Danish...

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London has one mayor and 25 assembly members with not much power. Its population is larger than Ireland's, Finland's, Denmark's or Bulgaria's (which have 14, 13, 13, and 17 MEPs; London has eight), yet Denmark's parliament has 175 Danish MPs, in Finland, there are 200 MPs, and in Bulgaria, 240. One mayor and 25 assembly members with not much power? Something seems wrong, to me.

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definately not! we already pay income tax on out wages and pensions plus 20% vat on nearly everyting we spend.
in this preposal as in every action the mayor has taken since being elected he is, once again trying to push the boundry of his...

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definately not! we already pay income tax on out wages and pensions plus 20% vat on nearly everyting we spend.
in this preposal as in every action the mayor has taken since being elected he is, once again trying to push the boundry of his authority.

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There is poverty in London because we are not able to retain the money we earn here.
From outside London it looks as though immigration, which is welcomed by London and a big part of its working population, is causing urban poverty.
London...

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There is poverty in London because we are not able to retain the money we earn here.
From outside London it looks as though immigration, which is welcomed by London and a big part of its working population, is causing urban poverty.
London should be an affluent city for its residents and workers.
It is not and that needs fixing.

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No. The arrogance is breathtaking - get elected then consult about gaining more powers....A lot of contribution to London's wealth and success comes from those who commute in from the home counties and beyond. They get no say, no vote...

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No. The arrogance is breathtaking - get elected then consult about gaining more powers....A lot of contribution to London's wealth and success comes from those who commute in from the home counties and beyond. They get no say, no vote, yet pay business rates, congestion charge, high fares etc etc.

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Yes, London is core to the uk economy and needs a champion and an influencer - government is too centralised

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Yes, London is core to the uk economy and needs a champion and an influencer - government is too centralised

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Certainly not, we live in the UK and everyone should pay the same tax.

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Certainly not, we live in the UK and everyone should pay the same tax.

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Like Scotland doesn't any more .........

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As a general statement, London should raise its own taxes to pay for all the services that it provides, rather than relying on block grants. By provides, I mean services that the mayor and boroughs are responsible for. So if hospitals are...

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As a general statement, London should raise its own taxes to pay for all the services that it provides, rather than relying on block grants. By provides, I mean services that the mayor and boroughs are responsible for. So if hospitals are provided by central government/ NHS then central government should raise taxes; if responsibility moves from cg to London, then London should raise its own taxes.

London should also move from business rates/ council tax to a site value tax where it is the land value that is taxed. That is, to a better version of two existing taxes.

It would I think be a mistake to add new taxes to local government (purchase tax, income tax, wealth tax) because it would create internal borders or avoidance opportunities.

There should be more freedom for London in some areas, e.g. no more planning appeals to Secretary of State unless National Interest, or Government of London was a party to the planning (e.g. development of own land). But that is an example of something quite local.

We need to ask: why would London systemically do it better than national government? For some areas it would be hard to see why (prisons). For others, e.g. probation, it might be easier to integrate with local social services and policing.

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Absolutely, heck I could be persuaded to vote for Independence. City-state Singapore style.

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Or maybe Berlin. The M25 could be the wall, airlifts to city airport, and the Thames for shipping. The M20, rail link and Channel Tunnel could be our land corridor that would connect us with the rest of the EU after the UK (minus London)...

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Or maybe Berlin. The M25 could be the wall, airlifts to city airport, and the Thames for shipping. The M20, rail link and Channel Tunnel could be our land corridor that would connect us with the rest of the EU after the UK (minus London) leave. I quite fancy that.

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Avatar for - Koala

More power for London, means more taxes for tax payers, and more power to the self seeking politicians who spend the money, and want more power to control our lives

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More power for London, means more taxes for tax payers, and more power to the self seeking politicians who spend the money, and want more power to control our lives

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!. Central Government (The National Government of the United Kingdom) should set out a clear plan for 'devolution of powers', not just devolution of taxes. The devolution needs to cover the whole country fairly and evenly, i.e. tidy up the...

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!. Central Government (The National Government of the United Kingdom) should set out a clear plan for 'devolution of powers', not just devolution of taxes. The devolution needs to cover the whole country fairly and evenly, i.e. tidy up the mess left by the last Labour Government where Scotland, Northern Ireland and Wales all have differing levels of devolved powers with England having no devolution at all.
2. Cities or conurbations (Manchester, London, Leeds-Bradford etc) need the same level playing field where powers are devolved (including taxes).
3. Devolved taxation powers should be clearly defined. We must not have two income taxes as in some other countries unless HMRC collect it as an add-on for the local tax making authority.
4. If stamp duty is added to National stamp duty this will further distort an already distorted housing market.
5. Give local authorities the power to collect site value rating or a site valued levy which will discourage land owners from holding on to available brown field sites. This would be a good way to speed up housing delevopement in cities. Site Value Rating is discussed by Dave Wentzel in a book entitled 'The Fair Tax' by E. O'Siochru

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No, the Mayor already has much too much authority and the capital has the lions share of the wealth because so much business and commerce is centred in London. The government needs to encourage new businesses, commerce and investment well...

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No, the Mayor already has much too much authority and the capital has the lions share of the wealth because so much business and commerce is centred in London. The government needs to encourage new businesses, commerce and investment well away from the South East to ensure the wealth that is created is evenly distributed fairly and throughout the nation.

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I would rather that the mayor, who fairly won an election, held the power in London, than Mrs. May, who was never elected to her position, and leads a party that allegedly only won the 2015 elections thanks to electoral fraud!

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Fairly won? He lied about fares as part of his election campaign, He's done almost nothing so far. Mrs May's position is as a result of a very particular set of circumstances and is valid within the UK's unwritten constitution.

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Absolutely not. We are not a City state !

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Absolutely not. We are not a City state !

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Maybe we should be!

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No, we shouldn't be.

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Local democracy will always be fettered if authorities are dependent on the budgetary whims of national government. The Treasury's obsession with controlling all expenditure centrally, allegedly in the interests of effective economic...

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Local democracy will always be fettered if authorities are dependent on the budgetary whims of national government. The Treasury's obsession with controlling all expenditure centrally, allegedly in the interests of effective economic management, has no real justification, given its record. In countries such as Germany and the United States, subsidiary tiers of government enjoy far wider powers to raise revenue and spend it as they think best - for which they are held electorally accountable - with no obvious ill effects. There are numerous possible additional sources of revenue which have been well-rehearsed over the years - see, for example, the reports of the Layfield Committee (1976) and the ODPM Select Committee (2004), plus the extensive literature on taxation of land values.

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Avatar for - Vaquita

We vote for our mayor. He can have more power as we have good buses better than in other cities

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Following the Brexit vote there are worrying signs that business will within 12 to 24 months start to feel the bite of that result. The foundation of London as a leading global city relies on the ease with which to do business in the City...

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Following the Brexit vote there are worrying signs that business will within 12 to 24 months start to feel the bite of that result. The foundation of London as a leading global city relies on the ease with which to do business in the City but the national government is now considering interventionist policies. If higher taxes coupled with greater interventionist strictures were imposed upon business then this will likely have a negative impact if handled badly.

It is said that London is the powerhouse for the rest of the country and so it is in everyones interest that London business thrives. There is a risk that a national interventionist approach might become a distraction (by taking the collective eye off London) and therefore harder for London to maintain its position. Greater control over local taxes is desirable so long as it doesn’t negatively impact infrastructure, investment and ease for doing business

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The EU referendum seems to say that Britain will leave. a couple the reasons being that it doesn't want to have Government decisions taken by a higher authority and didn't want to give money to any central fund. On that model it's hard to...

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The EU referendum seems to say that Britain will leave. a couple the reasons being that it doesn't want to have Government decisions taken by a higher authority and didn't want to give money to any central fund. On that model it's hard to understand how the Westminster Government can make decisions for Scotland, Wales and N. Ireland. or indeed anywhere that has any kind of elected council
What's sauce for the goose is sauce for the gander

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London should have more powers, in fact, in the light of the "brexit" referendum and the course of national politics since then, I would suggest that London becomes a city state, independent of the UK.