There's no magic answer to the funding gaps facing public services
But there is something Labour can do that both fits within its fiscal rules and manifesto and could address the visible local decay: give more tax-setting powers to councils
By me, for Bloomberg https://www.bloomberg.com/opinion/articles/2025-01-30/starmer-and-reeves-are-missing-a-trick-on-raising-uk-taxes?srnd=undefined&embedded-checkout=true
But there is something Labour can do that both fits within its fiscal rules and manifesto and could address the visible local decay: give more tax-setting powers to councils
By me, for Bloomberg https://www.bloomberg.com/opinion/articles/2025-01-30/starmer-and-reeves-are-missing-a-trick-on-raising-uk-taxes?srnd=undefined&embedded-checkout=true
Comments
I suppose the government could also pass new legislation that would require councils to provide minimum service levels for certain key services.
Alongside given them more tax raising powers.
Redcliff-Maud or similar with large fiscal powers. Councils carry the can!
Mirrlees review implementation with tax rises
Instead pretend devolution and raise worst tax possible (NIESR)
If the likes of Amazon object, kindly inform them that they are welcome not to sell here if they don't want to support the infrastructure.
Then, by the rules of the free market, a competitor who is willing to pay their fair share will grow to fill the gap.
No?
If Tories don't like it - tough:
The trouble is, Labour explicitly ruled out changing council tax bands during the general election.
Labour could then argue that councils, and not the government, are the ones changing council tax banding https://www.bloomberg.com/opinion/articles/2025-01-30/starmer-and-reeves-are-missing-a-trick-on-raising-uk-taxes?srnd=undefined&embedded-checkout=true
After all, if councils want to experiment with new taxes, why shouldn't they be allowed to? If local voters are against it, they can vote councils leaders out