THE OECD REPORT’S KEY POINTS

Expand spending devolution to the extent possible, making sure shared responsibilities for economic development are clear among levels of government;

Diversify Welsh own-revenue sources and make use of existing fiscal levers like tax rates, user fees etc to fill the fiscal gap;

Encourage local authorities to pool resources and work in partnership to build their administrative and financial capacity;

■ Optimise and diversify local taxes and tax bases to increase own revenue among local authorities, for example vacant land tax, non-domestic rates retention and tourist tax;

Review the fiscal equalisation system [that is meant to ensure poorer councils get funding based on their greater needs] to reduce disparities;

Support local authorities with a low tax base and encourage local economic development;

Ease borrowing restrictions for the Welsh Government and local authorities, and make them more flexible in order to help them address fiscal challenges in the short and medium term;

Make city and growth deals more competitive with other city deals by reinforcing their ability to leverage additional revenue, and by improving their transparency and accountability;

Establish a high-level inter-ministerial coordinating body for regional development chaired by the First Minister;

Establish an Office for Regional Development and Investment, and ensure it is sector-neutral by placing it in the Office of the First Minister;

Reintroduce a regional development agency to support regional development policy and investment implementation;

Increase local authority fiscal autonomy by reducing the role of earmarked grants and increasing general grants.