WE are witnessing probably the greatest period of change in local government in more than a century.

While the large urban authorities may have dominated the news with the talk of combined authorities and “metro mayors”, this week the Chancellor announced that by 2020 local authorities could retain 100 per cent of the business rates.

This is an exciting opportunity for Swindon, as it will support the council’s newly adopted priority to improve infrastructure and housing to support a growing, low-carbon economy.

Since the early 1990s, business rates have been set nationally and redistributed to support the less economically productive areas.

Although this has helped alleviate the problems of weaker councils, it has meant reducing the ability of productive places like Swindon to build on our successes.

Until the changes introduced in the last Parliament, which allows Swindon to keep 28 per cent of any new business rates, this borough was one of the top 20 contributors to the total business rate income in the country.

Year after year, we were unable to reinforce our economic achievements because we had to bail out others. By 2020, that should end.

Of course, we cannot see this proposed change as a panacea, a cure for everything.

Huge budget pressure will remain on the council because of the demographic pressures requiring us to build more schools, look after more children, and provide care and support for a growing elderly population. In addition, central government will still cut annual subsidy, called the revenue support grant, to zero.

That is why we still have to find £58m of savings in the next three financial years.

Nevertheless, Swindon can seize this opportunity with both hands.

By being financially independent, we will have greater ability to influence outcomes in this borough.

At the same time, we can make central government finance more transparent as it will be clear to all if government departments do not provide adequate funding for any subsequent responsibilities they transfer to local councils.

Even with this alteration to the council’s source of revenue, the other changes we are seeking remain important.

Being responsible for business rates will not allow us to go back to the way local government worked in the 1960s and 70s.

We will not be able to control everything whether that is schools, or leisure centres, or any of the other services where we will be working as one of a number of partners.

Fortunately, this administration has a proven record of being able to cooperate and collaborate with other service providers.

Although we still have to wait for the final detail, this new policy will help set Swindon free to become a major regional economic dynamo.