Recommendation 48

The Government must be more courageous with its long-term plans for the funding of local government. While stabilisation is important in the short term, both the Ministry and HM Treasury need to start considering how to get the sector back to full strength, which will need to include serious consideration of long-term, radical reforms, and further devolution of fiscal powers and autonomy. As well as reforming local taxes that are currently in place, HM Treasury must devolve tax-setting powers to local authorities, allowing them to set their own forms of local taxes such as tourist levies. (Recommendation, Paragraph 182) Councils in financial distress