The government is reportedly considering plans to permit English local authorities to increase Council Tax to ease funding pressures on the social care system. Council Tax increases are an insufficient response to the significant demographic pressures facing public services. Of course, a big part of the solution lies in health and social care reform – but tax reform can play a significant role too. This research note shows that fiscal decentralisation delivers more efficient public services. It is based in a large part on the recommendations of the 2020 Tax Commission in its final report The Single Income Tax. If local authorities are making big decisions on how much to spend on areas like social care, then they should have more say over how they raise the funds to pay for it.
1:52 PM 17, Jan 2017 James Price
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