Chancellor Philip Hammond is expected to scrap the planned 3.9% rise in business rates after lobbying from retail business groups.
The Retail Price Index (RPI) is currently used to determine the uplift in business rates next April, which will mean that British retailers could be hit with an extra £270 million in tax.
Colliers International has been lobbying the government for a rise tied to the Consumer Price Index, while the British Retail Consortium has called for business rates to be completely frozen.
Hammond is now poised to opt for a CPI-linked increase, which stands at 3%, according to the Sunday Times.
John Webber of Colliers International welcomed the move but called for a full business rates reform.
“This is still tinkering at the edges,” he says, adding: “We still have a business rates system that needs a proper reform, including a move to more frequent valuations. In particular the new Check Challenge Appeal System has been disastrous, with businesses finding it virtually impossible to navigate around the new system to appeal against unfair business rates.
“This still smells of re-organising the deckchairs on a high street called Titanic,” he adds.