Communities minister Andrew Stunell has reassured councils there has been significant local authority input into the forthcoming localised finance regime.

Delegates at the LGA conference in Birmingham today expressed concerns that the coalition's plan to localise business rates and introduce new borrowing powers could be ineffective if it is shaped entirely by Whitehall policy-wonks.

Deputy prime minister Nick Clegg today outlined the government's proposed overhaul of local government finance, and a formal consultation on the key proposals will follow publication of the DCLG's finance review next month.

Some councils remain concerned that Whitehall could leave local areas that do not raise significant levels of business rates to stagnate if ministers hand greater control of local rates to individual authorities.

But speaking to The MJ, Mr Stunell joined a chorus of ministers - which already includes Mr Clegg, communities secretary Eric Pickles and decentralisation minister Greg Clark - in playing down such fears.

'A formal consultation period will follow the finance report. But local authorities have not been backward in coming forward with suggestions already. There have been informal discussions, as always.'

Addressing concerns that some areas could suffer under a heavily localised business rates system, he added: 'It will be a tough balance to strike, but we're firmly of the view that the starting point is to protect vulnerable areas - those that are net beneficiaries of the centralised redistribution system.'

Interestingly, Mr Stunell said it would probably be 'easier' to protect those areas that most benefit from the current business rates system, such as Knowsley MBC and Burnley MBC.

'The big challenge has been designing a localised system that protects the two-thirds of authorities that oscillate around the centre of the current business rates system.

'Local economies are more volatile than people imagine and rates income can vary within one area significantly year on year. Ensuring the new system accommodates that has been vital.'