Councils across England will be able to keep £26b in business rates under new plans unveiled by the chancellor.
Local councils will be able to keep all proceeds from business rates raised in their area in what Osborne called the "biggest transfer of power to local government in living memory".
The current uniform rate will be axed which will allow councils to set their own business rates and keep all the money they raise.
But the Government said only councils with elected mayors would be able to raise rates leading to claims that poorer councils would be worse off.
Local authorities are currently responsible for collecting the tax. Since 2013 they have been allowed to keep half the revenue themselves - the rest is pooled centrally and redistributed back to councils.
The Treasury said the current grant would be scrapped by 2020.
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