BUSINESSES in Oxford have called for a cut in their rates bills after the Government said new powers would be given to council bosses.

Tory Chancellor of the Exchequer George Osborne said local authorities would be able to retain 100 per cent of business rates they collect and will be given the ability to reduce them by 2020.

At present councils keep 50 per cent of rates and give the rest to Whitehall, which redistributes them to town halls across the country.

Oxford City Council says the change could bring in more than £712,000 extra each year to the city’s coffers.

But it faces calls to cut rates from firms, which say competition from out-of-town retail centres, a lack of parking and congestion are making conditions hard for city centre traders.

Graham Jones, of the ROX business group, said: “A big issue here is people pay high rates in places like Oxford for a premier location, but you have more out-of-town and internet shopping.

“High street turnover has greatly diminished but business rates have stayed high. Businesses are now going to look for a reduction.”

Walton Street florist Richard Bailey said it was “the least the city council could do”. The owner of Daisies Flower Shop added: “Life is difficult for small businesses in Oxford at the moment. The main problem is parking but traffic is also a nightmare.”

City council deputy leader Ed Turner said the Labour-controlled authority would welcome new powers but it would “not nearly offset the Government cutbacks of £1.7m anticipated next year”.

He added: “We want to support businesses in the city centre and with the Westgate coming I am personally quite optimistic, but equally without the financial detail it would be rash to make promises at this stage.”

Announcing the change on Monday at the Conservative Party conference in Manchester, Mr Osborne hailed it as a “devolution revolution” that would allow councils to encourage business and boost local economies.

He said: “Attract a business, and you attract more money, regenerate a high street, and you’ll reap the benefits, grow your area, and you’ll grow your revenue too.”

John Cotton, leader of South Oxfordshire District Council, and Vale of White Horse District Council leader Matthew Barber both yesterday told the Oxford Mail they would look to cut business rates in their areas where possible.

But Mr Cotton added: “As a Conservative my natural instinct would be to lower taxes but there has to be a balance and the devil will be in the detail.”

The Treasury said that the new system will replace the grants currently provided to council.

It added that district councils would be required to pay a share of the business rates they collect to the county council.