Local government will be given a seat at the table for negotiating Britain’s exit from the European Union, the Government has confirmed.

Communities secretary Greg Clark has confirmed local government will be fully involved in discussing the terms of a Brexit, arguing Whitehall cannot be the ‘default destination; for new powers and funding.

He said: The response to leaving the European Union has to be a radically expanded role for local government. When we are transferring powers from the EU to Britain I think it is essential that Whitehall is not the default destination for them.’

Mr Clark has asked Gary Porter, chairman of the Local Government Association, to put together a team representing all political parties and parts of the country.

Speaking at the LGA annual conference, Mr Clark also launched a consultation into the reform of business rates, allowing councils to retain 100% of rates raised locally.

He said the consultation was deliberately ‘broad and open’ to help the reforms be as ‘fair and effective’ to all councils as possible.

Mr Clark also pledged to ‘redouble’ his efforts to bring the NHS and local councils together, arguing that devolution in health and social care must go as far as it has for economic development.

He said: ‘At its best, local NHS bodies work efficiently with local councils to ensure that hospital patients and elderly residents – who are one and the same people – are helped to get the best care they need in the most appropriate setting.

‘But too often this is the exception rather than the rule, and the genuine full-hearted collaboration that is necessary has too often been lacking. That that must change – culturally, as much as structurally.’

On the subject of devolution, the minister promised he would always ‘look for local agreement, not central imposition’ on agreements.

‘I will not compel any council to join any devolution arrangement. It needs to be locally agreed,’ he said.