Plan to allow local councils to levy their own business rates are expected to be dropped by Tony Blair today.

The move comes after the Small Business Service at the Department of Trade and Industry applied pressure on the DETR, resulting in Blair apparently changing his plans so that businesses would instead be allowed to confer with councils to discuss taxation levels within new "business districts".

The move is an attempt to address the democratic deficit where businesses have no vote and little say in the way the area they are in is run.