Local government: a continuing debate -- Local government in the 21st century: what is it for? -- what is limiting modern local government? -- Central government's contribution to reform -- Local government's contribution to reform -- Household taxation and local charges -- Business taxation -- The funding system and incentives -- A developmental approach

Report from an independent inquiry into the future role, function and funding of local government. Considers the degree of central control, accountability, expectations and pressures on services, and local solutions to public service challenge. Recommendations for the immediate future include greater flexibility for local authorities to place-shape with less control from the centre, changes to improve fairness of council tax, improving transparency in the funding system, and improving incentives for local authorities to promote economic prosperity and growth. Recommendations for the medium and longer term future include revaluing council tax to update the tax base and improve fairness, adding new bands to reduce bills for those in the lowest value properties, assigning a fixed proportion of income tax to local government, and local income tax or re-localisation of the business rate.