Chancellor George Osborne has suggested a future Conservative administration would give cities freedom to set business rates locally for the first time since 1988.

The declaration was made in an interview with The Guardian in which he claimed the pilot schemes allowing Manchester, Cheshire East and Cambridgeshire to keep the full proceeds of business rates growth could be expanded into further fiscal freedom.

He said from these pilots steps towards setting business rates locally could proceed on the proviso business concerns were addressed and it involved ‘well-run cities with a real interest in growing business in their area'.