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<p>We want a radical reshaping of the relationship between central and local government,
ending the merry go round of clawing back local taxes into Whitehall and handing them
out again in the form of grants. We will do this by giving local government full retention
of its Business Rates by 2020, meaning all income from local taxes will go towards
funding local services. We will work closely with the sector over the coming weeks
and months to ensure local people have more control over how their money is spent.
This will mean looking at the grants that currently go from central government to
local authorities, and the range of responsibilities central government asks local
government to deliver. There will still be redistribution between councils so that
councils don’t lose out just because their area starts from a weaker position. We
will set out more detail at the Spending Review.</p>
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