An important government advisory group is recommending that local councils be given far wider tax raising powers, Trouw says on Friday.

This would enable them to have money to implement local policy without interference from national government, the independent Council for Financial Affairs told the paper.

Currently, just 3.5% of council budgets come from local property and other taxes. The bulk of the money – some €26bn – comes from national government and is divided between them according to a complicated formula.

Local councils are increasingly taking over jobs from central government, in particular in relation to care services, the advisory body points out. At the same time, they do not have the financial means to decide at a local level how to carry out these functions.

Income tax

The increase in council taxes would be counterbalanced by a cut in income tax, so no one ended up paying more, the body said.

The change would also boost local democracy by giving locals more say over what happens in their communities and allowing political parties to develop better programmes, the advisory group said.

The report is currently out for consultation and a final version will be published later in the year, Trouw says.