The revaluation of business rates has sparked a backlash among national politicians, with demands for ‘fundamental’ reform. Of course, rates are already undergoing reform through the Local Government Finance Bill.

The Bill may not deal with many of the issues raised nationally, such as the long-term suitability of the tax, but it demonstrates that wider fiscal freedoms are needed to allay concerns over business rates as a source of sustainable income. The Bill will localise aspects of control and change the very nature of what local services rates directly fund.