Chancellor George Osborne will propose handing more powers to England’s cities next month, but that will not include tax-raising abilities.
He will unveil the powers as part of his “Northern Powerhouse” proposals and wants to give the region more say over science, skills, schools and housing.
It is believed that Osborne is reluctant to allow northern cities to keep more of a share of business rates, or a share of stamp duty, as it would lead to tax competition. It would also set a precedent which could be exploited by London’s Mayor Boris Johnson to benefit the capital.
Financial Times, 2
