Businesses back more tax retention for local government in London

As councils across London this month meet to set their council tax levels for the financial year ahead, polling released by the London Chamber of Commerce and Industry (LCCI) has shown that three in five (58%) London business leaders think that allowing local government to have greater control in London over tax levels (and how these are spent) would have a positive impact on the capital’s ability to meet its infrastructure needs, including housing and transport.

The figures released today by LCCI are based on polling of 507 London business decision makers, which was carried out by independent research agency ComRes on behalf of LCCI.

In total, 58% of London business leaders think that allowing local government to have greater control in London over tax levels and how these are spent would have a positive impact on London’s ability to meet its infrastructure needs, including for housing and transport. One in five (19%) say this would have no impact.

Chief executive of London Chamber of Commerce and Industry, Colin Stanbridge said, “Our polling shows majority support amongst London business leaders for London’s councils to have more control over how the overall tax generated in London is spent.

“They recognise the positive impact this would have on the capital’s ability to meet its infrastructure needs, including housing and transport.  Increased devolution from Whitehall will be vital in order for London to tackle its unique set of challenges, particularly as its population is expected to reach 10m by the year 2030, which will place an even greater strain on the capital’s infrastructure.”

Polling also showed:

1. – 53% of London business decision makers say that allowing local government to have greater control in London over tax levels and how these are spent would have a positive impact on the competitiveness of London’s business environment (compared to 13% negative)
2. – 48% of London business leaders say that allowing local government to have greater control in London over tax levels would have a positive impact on the ability to train the workforce to meet the skills requirements of London businesses (compared to 12% negative), while a similar proportion (47%) of London business decision makers say that this would have a positive impact on the transparency and accountability of public spending (compared to 16% negative).