LEADING lights in councils in both Slough and the Royal Borough have today backed plans for English councils to keep all the cash they generate from business rates.

George Osborne told the Conservative Party conference earlier today the move would see £26bn diverted from central government to local government funds which have been slashed in recent years by budget cuts.

In his speech at the conference in Manchester, Mr Osborne said the change would mean councils would no longer had to go to the government 'with a begging bowl'.

Under the plans, councils will also be able to cut taxes, or raise them if local firms agree.

Mr Osborne called it the 'biggest transfer of power to local government' in recent history.

Labour-run Slough Borough Council should benefit hugely from the scheme, in theory, due to the large number of businesses in the town thanks to Slough Trading Estate.

Council leader Rob Anderson said: “It is a step in the right direction and something we in Slough have argued for many years. As ever the devil will be in the detail but we are confident that any system which rewards growth and ambition will be beneficial to Slough.”

The plan has also been enthusiastically backed by the Conservative-run Royal Borough. With the advent of Crossrail coming to Maidenhead, the town is expected to be of particular attraction to new businesses and, as a result, business ratepayers.

Cllr Simon Dudley, cabinet member for finance who was present for Mr Osborne's speech, said: "We are going to have the abolition of the revenue support grant, but then we will be able to keep our business rates and keep growth from business rates as business grows and even lower rates if we want to attract new businesses to the area and keep that growth going.

"It is a huge transfer of power from central government to local government - it really is a significant step in terms of localism. Osborne has really done a fantastic thing here. If you can grow your local economy, you are going to benefit from that by getting more in business rates which means you can invest in services or reduce council tax."

Under the current system, in place since 1988, councils generate business rates which are then sent on to central government and then redistributed back to local government based on certain formula.