Measure
Under the Fiscal Devolution Roadmap, mayors in England will receive a share of income tax receipts, replacing elements of central government grant funding. Further details on Income Ttax assignment will be announced at the spending review.
Mayors will also receive a 20% share of business rates, with the government aiming for local and regional government to retain 100% of business rates income by the end of the decade.
Alongside these funding changes, strategic authorities will gain powers to introduce an overnight visitor levy, charged as a percentage of accommodation costs.
Across England, mayoral strategic authorities and local councils will gain greater control over funding for local priorities.
For accommodation providers and overnight visitors, the impact of the visitor levy will depend on whether it is introduced locally and the rate applied.
With greater control over revenues, local leaders should be better placed to plan investment and respond to local economic priorities. To deliver these benefits, the arrangements will need clear accountability, sufficient local capacity and a funding framework that recognises differences in local tax bases.
For the overnight visitor levy, consultation with accommodation providers and simple administration will be important, alongside transparency over how revenues support the local visitor economy.