Government defers 5% business rates rise

Instead rates will only increase by 2 per cent, with the remaining 3 per cent being spread over the next two years.

Darling said: “I believe this will provide real and genuine help for businesses in this country.”

He said: “The Government recognises that businesses need help now to ease their cash flow at a time when money is very tight. This measure will help businesses to smooth their rates payments over the next three years.”

Retailers have been putting pressure on the Government to curb business rate rises, which would have cost them around £300m if the 5 per cent rise had been implemented as planned.

Retail Week has been at the forefront of the campaign to urge the Government to re-think business rates in the face of the crippling economic climate.

We launched our Rates Rage campaign in October last year, with support from leading retailers including Sir Terry Leahy, Sir Stuart Rose and Andy Bond.

Darling wrote to Retail Week in May stating that he had no plans to amend the business rates policy, arguing freezing business rates would cost almost £1bn.