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FINANCE

Getting fiscal devolution right

Luke Raikes says local tax powers can help revive the places Whitehall abandoned, and he proposes three quick wins the Government could move forward with immediately.

© Boris Stroujko / Shutterstock

The current wave of anger and political disillusion is rooted in longstanding local economic decline. One crucial reason why many places are struggling is because they have lacked the tax raising powers to do things for themselves.

In the UK, local authorities do not spend on the key ingredients places need for their economies to work. The UK's rate of local economic spending is half that of Germany, France and the OECD average.

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