CBI responds to London Finance Commission report

16 May 2013 02:08 PM

The CBI yesterday responded to a report by the London Finance Commission on the devolution of tax and spending powers from central government to the Mayor of London.

Sara Parker, CBI London Director, said:

“For any financial devolution to go ahead we need to be sure that it will promote jobs, infrastructure investment and growth.

“The Commission has helpfully recognised the need not to upset the delicate transfer mechanism that exists between the capital and the rest of the country, and focussed on property tax revenues such as stamp duty, as well as landfill tax.

“Though we support business rate retention, we are not in favour of local rate setting, which would lead to business uncertainty. As we’ve said before, business rate retention could be strengthened by removing the cap and by increasing the value of existing stock within the scope of the scheme, as well as including new property.

“It’s imperative that any change doesn’t lead to distortions in the tax system or additional administrative costs.” 

Note to Editors:

The CBI is the UK's leading business organisation, speaking for some 240,000 businesses that together employ around a third of the private sector workforce. With offices across the UK as well as representation in Brussels, Washington, Beijing and Delhi the CBI communicates the British business voice around the world.