Communities secretary Sajid Javid made the announcement on 11 April.
Hudson is the former director general for public services at the Treasury. He is also a former chief executive of the Valuation Office Agency.
Javid said: “As we move towards local government retaining 75% of locally collected business rates, it is vital that the business rates retention system operates as smoothly as possible.
“This review, led by an independent expert in this field, will ensure robust processes across the board.”
The independent review will aim to build on the Macpherson review of 2013.
Javid said he would update the communities and local government select committee when details of the review have been finalised.
The government is planning to increase the share of business rates that English councils retain from 50% to 75% by 2020.
Read CIPFA local government policy manager Jo Pitt’s take on the future of business rates retention.
