Three city councils have signalled they will lobby the government for more powers to raise their own income.

Birmingham, Manchester and Westminster city councils announced they are gathering evidence that they will put to ministers ahead of the review of local government finance which is due in the summer.

Manchester, Birmingham and Westminster are looking at way to be less dependent on central government

The councils have launched an investigation, which will be led by Sir Stuart Lipton, one of Britain’s most respected property developers.

Sir Stuart said: ‘The current system for funding our major cities is unsustainable and our goal is to investigate how it can become more self-sufficient.’

Included on the team is Nick Raynsford MP, former local government minister and columnist for The MJ.

The group will find ways for local government to become less dependent on central government financing.

Mike Whitby, leader of Birmingham City Council, said: ‘As the largest UK city economy outside of the capital Birmingham has a vital role to play in supporting the UK growth agenda. Locally we are already working closely with business, developing new financial tools and levering in investment from some of the major international growth hubs.’

Cllr Colin Barrow, leader of Westminster Council, added: ‘We have a goal and vision of becoming self-sufficient. The council no longer wants to go cap in hand to ministers for hand-outs to pay for the services it delivers for the community.

‘The current system does not recognise the contribution that local government plays in supporting growth or allows local authorities to share the benefits of growth. The commissioners are some of the very best and brightest thinkers in their field and we look forward to their findings.’