England tax rebates "not possible at moment" under devolution plans

It is "not possible at the moment" for English mayors to give their local residents tax rebates under the government's devolution plans, according to First Secretary of State Louise Haigh.

UK Prime Minister Andy Burnham has announced that English mayors will be allowed to keep a share of the income tax and business rates collected in their area.

This led to several mayors saying they would create schemes to put money back into the pockets of taxpayers instead of investing in public services, including Conservative Tees Valley mayor Ben Houchen.

However, Haigh, who is also chancellor of the Duchy of Lancaster, said she is "not convinced it would be possible" for Houchen to set up a rebate scheme.

Speaking to Times Radio, she said: "We'd have to see the details of that, but it certainly isn't possible at the moment."

Haigh added: "Those kind of schemes necessitate HMRC to set up full schemes, that's just not possible at the moment.

"The way that the mayors are set up and work is to reinvest the money into their public services, into their local economies. It's not possible at the moment.

"We'd have to see, obviously, plans and a scheme put forward by Ben Houchen, but that's not how these powers and resources are intended to be used."

Later, speaking to BBC Radio 4's Today programme, she added: "There's not a system that would currently allow that, and they certainly wouldn't be able to set tax rates locally or regionally, but we'll consider what proposals are put forward.

"The real purpose of this though is to allow areas to benefit when they create growth, when they create new jobs, and to keep investing in their local areas, in public services, in transport, and to keep that virtuous circle of investment."

Haigh also addressed concerns that many areas of the country do not have mayors, explaining that the government is setting out a path for every area to have a strategic authority, which will have the same powers to retain a share of their income tax and business rates.

She told the Today programme: "We won't be imposing mayors to areas that don't want it, but we will be creating strategic authorities in every area of England, and they will be able to hold these powers and resources as well.

"They don't need to have mayors in order to control them or in order to retain a share of their income tax and business rates."

Strategic authorities will also have the power to set set an overnight visitors' levy, if they wish.

By Abbie Llewelyn, Press Associatinon political staff

Press Association: News

source: PA

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