|
Getting your Trinity Audio player ready...
|
A new report commissioned by the County Councils Network (CCN) reveals that granting England’s counties greater fiscal autonomy could generate £4.4 billion per year to invest in local services, infrastructure, and economic development—without raising taxes.
💷 Proposed Revenue Retention Measures
The report, authored by Grant Thornton UK, outlines four key mechanisms for fiscal devolution:
| Measure | Estimated Annual Revenue |
|---|---|
| Retaining growth in income tax receipts | £3.8 billion |
| Keeping 50% of stamp duty on new homes | £237 million |
| Introducing a £2/night tourist tax | £209 million |
| Retaining 10% of the Apprenticeship Levy | £120 million |
Combined, these measures could provide 10% of an average county authority’s budget, with a national impact of £8.9 billion annually.
🚧 Strategic Investment Potential
The CCN proposes reinvesting the funds in:
- Transport and infrastructure upgrades
- Skills development and job creation
- Housing and regeneration initiatives
- Local services such as pothole repairs
Counties already contribute significantly to the national economy, raising £390 billion in 2023, or 57% of England’s total revenue (excluding London). However, much of this is redistributed centrally, limiting local investment capacity.
🗣️ Political Momentum and Support
Cllr Richard Roberts, CCN’s Economic Growth Spokesperson, emphasized that the proposals are not about new taxes, but smarter use of existing ones:
“There has never been a better time to consider empowering local areas with fiscal devolution… allowing local areas who understand what’s needed to drive growth to invest to that end.”
The report aligns with the government’s ‘devolution by default’ policy and follows recent remarks by Deputy Prime Minister Angela Rayner, who expressed support for expanding fiscal powers to councils.
⚖️ Equity and Redistribution
While all counties stand to benefit, the report acknowledges regional disparities in revenue-generating potential. It recommends that fiscal devolution complement existing funding and include redistribution mechanisms to ensure fairness across regions.
You can read the full analysis on the County Councils Network’s website. Let me know if you’d like this adapted into a policy brief or stakeholder presentation.
Excerpts from article authored by Dan Benn for UK Public Sector Executive
