Recommendation 8

Financial devolution is necessary to ensure the success of devolution through giving devolved authorities greater freedom from central government, enabling them to take longer-term decisions reflective of their strategic purpose, and enhancing their direct accountability to their electorates. It must be accompanied by redistributive measures to ensure areas with lower revenue raising potential do not lose out. We therefore recommend that the Government should: • explore alternative ways in which revenue can be raised, which could reduce reliance on council tax and business rates. • consider offering devolution of a tourism tax, possibly to combined authorities where the revenue can be redistributed as well as meet the costs incurred by tourists. • follow our previous recommendation to explore how to level the playing field between bricks and mortar retailers and online retailers. Further financial devolution could follow these measures if they prove to be a success.