Plans to scrap government funding to local authorities and replace it with business rate revenue are fraught with problems, not least how to ensure deprived areas are protected from funding losses, according to a new study from the IFS, A time of revolution? British local government finance in the 2010s.

In the past five years poorer, urban areas have seen the biggest losses in funding because of cuts in specific grants. With a 1% growth in the business rate base generating the equivalent of an extra £63.50 per person in Westminster but just £2.60 in Wolverhampton, any 100% scheme must be carefully calibrated.