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Edit: I seem to have found a bug. In the first method I describe you can certainly resize an image, move, rotate etc BUT if you then click the Set as page background it will revert to the original format and size.
The second method works as expected. Any edits made to the image remain sticky and it does not revert to the original format.
My sincere apologies for my error - I didn't click through Set as page background on the first method so didn't realise that it doesn't quite work - only if you then leave it as a simple layer.
There are a couple of ways to do this:
1. Click on the background image.
2. In the panel on the left hand side choose Detach page background.
3. When you've finished your edit, choose Set as page background if you want to, or leave as a simple layer.
4. You can also double-click the image background which will open the Image panel and give you the blue bounding box and control handles.
5. You can resize your image as desired and close the image panel and your background has resized but remains a background as opposed to changing to a layer.
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