Scottish councils have called for business rates to be further localised after George Osborne announced that English authorities will be allowed to keep rates totalling £26 billion.
In his speech to the Conservative conference in Manchester, the Chancellor said the uniform business rate which imposes a single rate on every council will be abolished.
Under the new system, rather than handing over business rates to Whitehall to be redistributed to town halls in grants, local authorities will be able from 2020 to keep 100% of the cash they raise from local companies.
A spokesman for Cosla, the umbrella body for Scottish councils, said the group wanted the Scottish Government to copy the move.
“Cosla, in its local government funding review, set out a strong case for fiscal autonomy and as part of that called for the localisation of business rates,” he said.
“We have called on the Scottish Government to undertake joint work with us to understand the full benefits and implications of localisation in Scotland.”
David Watt, executive director of the Institute of Directors in Scotland, added business backing to the plans.
He said: “Devolution of business rates is something that all the Scottish parties will have to think seriously about in the run up to next year’s elections.
“Giving greater economic responsibility to local authorities would be a big step forward, and be good for business in Scotland.”
A Scottish Government spokesman said: “Scottish councils already retain all of the business rates they collect and the power to reduce business rates bills is being devolved this month.
“In contrast to UK Government funding of English councils, the Scottish Government has treated councils very fairly, with a total settlement this year of over £10.85 billion.”