The way in which councils in Wales are funded needs a complete overhaul, according to the Independent Commission on Local Government Finance in Wales.
In its final report, the commission has recommended changing current funding formulas and giving local authorities the power to raise a larger share of their income from local levies, including a tourism tax.
It additionally called on the Welsh Government to reduce the number of grant schemes and incorporate more of them into the Revenue Support Grant.
An independent grants commission should also be created to ensure future decisions on grants and the formula are made independently of the Welsh Government, the commission said.
‘While not completely broken, the current system for funding local government in Wales is broadly the same one inherited from England and Wales arrangements that predate the highly successful and continuing devolution journey that Wales has embarked upon,’ said commission chair, Tony Travers.
‘There is now a clear need to support Wales’ increasingly devolved public services with an updated and improved financial system that is fit for purpose.’
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