Let London set income tax rates, mayoral candidate says

A SLEW of tax-raising powers should be handed to the mayor’s office, one of three Conservative contenders for London mayoralty has said.

Joy Morrissey also wants City Hall to be allowed to set its own income tax rates. Ms Morrissey, a councillor in Ealing with a background in film, set out her plans in a City A.M. article.

She is one of three possible Tory candidates – along with Andrew Boff and Shaun Bailey – to fight Sadiq Khan at the 2020 London Mayoral elections.

Ms Morrissey said the tax-raising powers would help to ensure the capital was “unshackled from the constraints of central government and allowed to realise its potential as one of the greatest cities on the planet”. She continued: “The full suite of property taxes should be devolved, including council tax, business rates, and stamp duty. Stamp duty in particular often imposes a heavy burden on buyers in the capital, where national bands fail to reflect the fact that London prices vastly exceed the UK average.

“Collecting business rates within London would allow us to reinvest the proceeds of growth into the infrastructure it needs to continue as a globally competitive business hub.

“There is also a clear case for London starting to have control over the tax rates and bands on income.”

Mark Littlewood, the director general of the Institute of Economic Affairs, said: “Both London, and the UK as a whole, has much to gain from devolution.”