Image source: mrgarethm
With chancellor George Osborne’s first post election speech, businesses in the North West have been keen to comment on what the suggested devolution of Northern cities means to them.
The plans will see English cities get powers over housing, transport, planning and policing with a particular focus on cities in the North of England.
George Osborne said that a new job was created in the North every three and a half minutes, meaning the North is growing faster per person than London.
Employment in the North is up by 151,000 in just a year, with unemployment falling by over 20%.
Read below to hear from some of our North West businesses:
BDO LLP, Emma Suchland
Tax Partner at accountants and business advisors BDO LLP in the North West, Emma Suchland, said: “Devolution of taxing powers to big cities will not be as broad ranging as Scottish devolution and the taxes likely to be devolved are stamp duty land tax and council tax rather than income tax, corporation tax or VAT.
“Giving big cities more power over local property based taxes would allow them to react to local economic conditions and, in the case of stamp duty land tax, local property prices. In Manchester for example property prices differ considerably to London where the stamp duty land tax rates and bandings have historically been set.
“As more cities obtain these taxing and spending powers it will be interesting to see whether cities begin to compete with each other on setting tax rates and whether they will direct the funds they raise to attract businesses and encourage start-ups or focus on local residents - who will of course vote for the next mayor!“
IoD, Mike Perls
North West Chairman of the IoD, Mike Perls, said: “The political momentum behind devolution has been incredible, and these new plans could be one of the most radical shake-ups to local government in living memory.
“This is an exciting opportunity for businesses in the North West to lead the ‘devolution revolution’, and blaze a trail for other cities to follow.
“Businesses across the country back the plans to give local authorities more power on issues including skills, housing, transport and taxes.
“In the North West, the appetite for devolution is particularly strong.
“Politicians of all parties and businesses from all sectors have recognised the need to make sure every corner of the UK benefits as the economy continues to grow.
“Giving businesses in the region a greater say in addressing skills shortages, infrastructure requirements and on local planning decisions is one of the best ways this can be achieved.
“The eyes of England’s cities will now turn to the North West. The IoD will be working with local and national politicians, civil servants and businesses in the region to make sure we make the most of this unique opportunity.“
Do you have an opinion on the latest speech by George Osborne? Comment below or email sophia.taha@bdaily.co.uk