POLICY
“Devolving Tax” - Operation 8-Ball
The Unfair Idea
Why should Carlisle or Grimsby tax go first to the top and centre rather than staying where it was created and earned? What if living in Manchester meant I had greater unemployment benefits post redundancy?
Why?
- To separate strategic and tactical political policy opportunities
- To level up choice, opportunity and power
- To nullify nationalism inside the Union
- To allow for flexible “red team” policy darwinism
- To make for diversified government
Outcome:
- County’s MPs sit in a caucus with the county leaders, a mini select committee.
- Redistribute Back to counties.
- Charge “central portfolio” fees for Health, Defence, Energy + Contingency
- Allow county-level tax treasury.
- Mandate the abolition of the living tax - council tax ends.
- Offer county’s opportunity to Add to UC dividends.
- Invert the tax pyramid.
Powers:
- Taxes collected for businesses with registered addresses in the county and at least an arbitrary number [25%-40%] of workforce within the municipal borders
- Taxes collected by Household postcode, tax codes adjusted to reflect
- Establish “tax spreads” set annually by government
- Allows devolved taxing entities to set tax locally
- Trio of taxes, Corporation, Income and Dividend between X-Y%
- VAT is still set centrally
Opportunities:
- Creation of redistributive institutions for:
- Infrastructure
- Investment
- Education
- Science
Wins:
Creates further interest in regional politics - offering an excellent proving ground for future MPs. Reigniting the political professions standing.
Offers a clear line of demarcation between STRATEGIC politics and TACTICAL politics. The government and MPs can focus on more strategic and ambitious outcomes.
A nimble society where Social Mobility can be driven through County-level competition. Better strategic redistributive means arise. Opportunities for further democratic reform - such as the counties having more influence in the Lords arises.
Regions can shape policy in areas that suit them. If they favour banking, they can establish policy to encourage business creation or relocation to that sector. Ditto manufacturing.
Central government can set spreads, widening and tightening them annually - putting tax on the agenda.
Potential for investment and other growth centres without micromanagement from central government.
Bank of England could also offer devolved lending to County-level financial institutions. What else could be sent back to counties?
Allows for proper reform of Parish Councils - the forgotten corner of our democracy
Amazing optics if coupled with the abolition of Council Tax
SNP would have to reject their own counties getting this power
Redistributive leverage and policy is paramount to a coherent union hierarchy
Strategic control and oversight is fully maintained
If Labour is the party of tax - there will be many more examples
Policy is likely conservative, but could be seen as left of centre or centre-left
