Allowing northern cities to keep all the revenues from business rates could inject £4.4bn into their economies, according to consultancy firm CVS.
Manchester would receive around £1.3bn, while Leed and its metropolitan area would benefit from retaining £1.1bn.
Chancellor George Osborne will present a range of powers and policies to boost the northern cities. After much lobbying, business rates retention is expected to form part of the package. Communities Secretary Eric Pickles has suggested that councils keep 90% of all rates, up from the 50% they currently retain, to encourage local initiatives to boost business activity.
Daily telegraph Business, 1
