New powers announced for local authorities may encourage growth - the overall impact on areas in need of regeneration remains to be seen.
Announcing the surprise reforms at Conservative party conference in Manchester, Osborne promised a “devolution revolution” as announcing new freedoms for councils to retain the £26bn in business rate income at local level and to cut the level of the rate. Osborne told delegates at the Conservative party conference: “Today I am embarking on the biggest transfer of power to our local government in living memory. We’re going to allow local government to keep the rates they collect from business. That’s right, all £26bn of business rates will be kept by councils instead of being sent up to Whitehall.”