Council tax, stamp duty and business rates in England should be replaced with a devolved land value tax, according to a think tank chaired by former chancellor George Osborne.
The Northern Powerhouse Partnership has proposed the tax as part of a radical overhaul of the local government funding system.
The formula it suggests would “cut out” the Treasury, reversing the current situation under which most local government funds derive from Whitehall.
The report also recommended diverting a penny from employer National Insurance contributions towards local infrastructure and transport services, mirroring the French model, and a localised hotel tax, a levy commonly used in continental Europe.
