Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, if his Department will undertake an analysis of the feasibility of devolving property taxes to London linked to specific infrastructure projects.

By 2020, local government will retain 100% of business rates and will have the power to reduce business rates. Directly elected mayoral authorities, such as the Mayor of London, will have the power to levy a small supplement on business rates to fund new infrastructure.

In the last Parliament, the Government gave local councils greater power over council tax support schemes and the treatment of second homes and empty properties. The Government believes there would be difficulties in devolving other property taxes, such as Stamp Duty Land Tax and Capital Gains Tax, to London as this would create a distortive effect around the border, increase administration costs and complexity and expose local government to significant fiscal risk.