Leaked copies of a report commissioned by the Mayor of London suggest he wants control over the £12bn of revenue raised in the capital from duties such as council tax, stamp duty, high end property taxes, and capital gains tax in the capital. In return central government funding would be cut by an equivalent amount.
Other proposals are expected to result in a new bid by City Hall to be granted independent borrowing powers to invest in housing and major infrastructure projects.
There could also be calls for the Mayor’s office to gain the authority to introduce small levies – such as a tourist tax – as well as the right to set council tax bands across the 32 London boroughs. The moves would be a major power grab given the Mayor’s main sources of income now consist of income from travel fares and a part of Londoners’ council tax.