Devolution of financial powers to Yorkshire could see West Yorkshire and South Yorkshire gain almost half a billion a year to improve the region.
Research by the Centre for Progressive Policy published today found that expanding fiscal devolution by giving areas 2 per cent of income tax to spend locally would allow redistribution which means that local economies do not fall behind. Its analysis found that the West Yorkshire combined authority would receive £259.2m a year annually under this policy, with South Yorkshire receiving £192.4m.
“We don’t have plans to give tax-raising powers to local authorities, and the tax burden is at a historical high,” Ms Reeves told The Yorkshire Post earlier this year. “The last thing we need at the moment is more taxes being dreamt up by either Westminster or the Town Hall. “We have put forward a few specific closings of tax loopholes. There are targeted tax increases but that is through closing loopholes.
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