The newly-empowered housing department has renewed its push for tax-levying powers to be handed to mayors and local authorities. This would begin with a ‘tourist tax’ on hotel stays. Might as well just convert every hotel and BnB into asylum accommmodation and have it over with…
Devolution minister Miatta Fahnbulleh was overheard by a co-conspirator at Labour Conference speaking privately about efforts by authorities and mayors to levy a tourist tax on top of hotel bills:
“They are putting a very good case. They’re having a conversation with the department. They’re not going to get a rejection from MHCLG. It’s a question of persuading the Treasury.“
That is a clear statement of intent. Rayner was previously rebuffed by Reeves in her attempts to get the powers over the line – officials in the department were confident of movement later into the year. MHCLG is now led by close Starmer/McSweeney ally Steve Reed. With local authorities begging for cash devolving tax powers – so far blocked by HMT – could solve some budgetary issues. The scope would only grow…
Speaking at a conference event on devolution, Fahnbulleh said there would be “many amendments” to Labour’s Devolution Bill in order to further empower mayoralties. The direction of travel is clear…
Former Treasury minister and adviser to Burnham in the Makerfield campaign Lord Jim O’Neill, who has turned down a role in his government, said Burnham’s first statement Commons was:
“The last thing investors wanted to hear… gilt yields have risen by a 0.25% in one day, which is a lot. We’ve not had that since Liz Truss days… If your country is under the focus of ‘can they come up with a sensible fiscal strategy’ on a day when the markets think ‘well no, you’re not showing any sign of it’ you’re going to have a tough day…if it stays like this your mortgage rate is going up.”