Labour Is Missing a Tax-Raising Trick: Chaminda Jayanetti

Stagnant growth, rising debt costs and a handcuffing manifesto mean UK Chancellor of the Exchequer Rachel Reeves has limited room for maneuver. Public services and the welfare system are crying out for extra funding, but the Treasury is demanding further savings.

There’s no magic answer to the yawning funding gaps facing England’s public services. But there is something Labour can do that both fits within its fiscal rules and manifesto pledges and could address the visible local decay: The government can give more tax-setting powers to councils.

Devolving taxation is a thorny issue. It can exacerbate regional inequality, as wealthier areas ...