The Chancellor is reportedly eyeing the possibility of bringing some relief to business rates by next April.
According to The Sunday Times, Philip Hammond has indicated he is prepared to listen to the concerns of business groups and a change may be in the upcoming Budget.
Business rates rises are set in line with the August Retail Price Index rate of inflation.
As a result, the rates are due to uprate by 3.9 per cent next spring.
However, the lower Consumer Prices Index (CPI), which sets inflation at three per cent, has been suggested instead.
The news comes after Hammond received a negative reaction to his speech at the Conservative Party conference.
“The concerns of the business lobby have been heard,” a government source told The Sunday Times.
“We are considering options that include uprating to a lower rate like CPI.
“This is very much at the forefront of our thoughts.”
The British Retail Consortium (BRC) said the possibility of business rates being capped at three per cent would be a “step forward”.
“Without decisive action from the Chancellor in his upcoming Budget then retailers face a stark £270 million leap in their rates bill from April,” BRC business policy director Tom Ironside said.
“This would have consequences for retailers’ investment plans, especially for investment in new or refurbished stores in town centres and in less economically viable locations.”
The Budget will be revealed on November 22.
