A Welsh assembly minister has suggested that business rates should be returned to local authority control.

Publishing the results of a consultation on local government finance in Wales, Sue Essex said the proposal should be looked at in more detail.

The business lobby has opposed the move, fearing that councils could push up taxes for companies as an alternative to raising extra funds from council tax payers.

Cardiff's finance and local government minister said the consultation process had "stimulated a constructive debate across Wales amongst local authorities, the business community, members of the public and other interested parties".

"These views will highlight key areas where we think further work is necessary," she said.

"They include immediate reform of the council tax benefit system and consideration of the feasibility of local income tax as a supplementary local tax, with emphasis on ensuring that the criteria of cost effectiveness is met.

"The Assembly Government would also like to see further work and research on the viability of returning business rates to local authority control within the parameters of suitable safeguards for the business community.

"We are also keen to ensure that all of these options are looked at in more detail before any final decisions are made on fundamental reform to the local government finance system."

In Wales some 19 per cent of local government funding is currently raised through council tax and 81 per cent comes from central government.

In England a larger share, 25 per cent, is raised from local tax payers.

The Welsh Assembly Government will now be submitting the consultations to local government minister Nick Raynsford, who is considering the way forward in England.