CHANCELLOR George Osborne’s move to allow local councils to keep 100 per cent of business rates revenue is taking the devolution agenda into a new “bold frontier”, according to think tank organisation IPPR North.

The Chancellor spelled out his plans at the Conservative Party conference in Manchester.

Director Ed Cox said: “George Osborne should be applauded for taking the devolution agenda into a new bold frontier by giving local areas new powers over business rates.

“The real prize of the devolution agenda is for local areas to have powers over how they collect, raise and spend revenues and this is an important first step towards that goal.

“It will give local leaders the powers and incentives to create greater prosperity – a power which for too long has been held in Whitehall and stymied a rebalancing of the economy.

“Business leaders want to see these decisions made closer to home and need to be closely involved in how the new rates are set and used.”

Councils across the North-East recently submitted their proposals for further devolved powers to the Government and further details are expected to be revealed in the Chancellor’s autumn statement.

:: The North needs “real action” instead of rhetoric from the Government when it comes to reinvigorating the regional economy, says Stockton North MP Alex Cunningham.

Mr Cunningham was responding to a survey showing that business growth has slowed among North-East firms.

He said: “If Ministers are truly committed to narrowing the north-south divide and rebalancing the economy, much more needs to be done to restore confidence and spur investment.”