Plans to use business rates to fund local government have been dealt a major blow by a survey that finds wavering confidence in the policy.

This year’s annual local government finance survey by The MJ and LGiU think-tank found more than three-quarters (77%) were either not at all confident or not very confident in 100% business rates retention as a mechanism to fund the sector.Chief executives and finance directors have increasingly called for the devolution of business rates to be reconsidered amid an uncertain economic climate.