In a parliamentary debate on Monday (25 January), High Peak MP Robert Largan delivered a speech, urging Ministers to put tax reform at the heart of the levelling-up agenda.
Earlier this month, Robert Largan MP launched a new report, Levelling Up the Tax System, with the Levelling Up Taskforce. The report included an analysis of how different tax measures impact different parts of the country and recommendations on how tax reform can improve people’s incomes in the most deprived areas.
During the speech, the High Peak MP said:
“Average council tax per head in London is the lowest in England, at £481 per person. That is a fifth lower than in more deprived regions, such as the east of England and the south-west, and as a share of post-tax income, Londoners pay half of what households in Yorkshire and the north-east typically pay. That difference is getting even starker. London has seen its share of total council tax revenue decline steadily despite average house prices more than doubling in the capital, yet councils in London typically get a much higher central Government grant, despite the fact that they are able to benefit from much greater revenue-raising opportunities such as parking and that services are typically cheaper to deliver given the population density. While it is true that London generates £1 in every £5 of tax receipts, we must remember that London generates less tax than any other region as a share of GDP.”
The High Peak MP proceeded to discuss how the tax system, including council tax, can be reformed in order to level up places like High Peak. This includes requiring a regional impact assessment of different tax measures as standard Treasury practice.
Robert Largan MP commented:
“To help the whole country recover from Covid, the Government needs to think about how it can quickly and effectively change how the economy and the state works for people across the regions.
“That is why I am proud to be a member of the Levelling Up Taskforce and to promote this vital research on tax reform. We can only level up the country if the tax system is made to truly work for places like High Peak.”
