Will Hammond slash business rates by £300m?

STRUGGLING high streets could be thrown a £300million business rates lifeline in next week’s Budget.

Chancellor Philip Hammond is considering a special fund to support ailing shopping areas in a bid to end the crisis.

It is thought that he could unveil a £300million tax cut designed to help town centres badly hit by closures and the loss of more than 50,000 retail jobs so far this year.

The plan is likely to be part of a package of measures to save the high street, following a Daily Mail campaign.

It would see firms in hard-hit areas offered an immediate cut to their rates that would last for two years.

Other schemes being considered include a tax on huge foreign tech firms such as Amazon that are luring customers away from bricks and mortar stores.

Mike Cherry, chairman of the Federation of Small Businesses, said: ‘ Despite efforts to reduce the business rates burden for small firms, far too many are still having their futures threatened by this ridiculous tax.

‘This Budget is the Chancellor’s opportunity to turn kind words about supporting small businesses into action. If he’s serious about supporting firms on our high streets, he needs to reform business rates.’

The Chancellor has come under heavy pressure to take action in the Budget and there have been growing signs that ministers plan to take action.

Earlier this month, Treasury minister Robert Jenrick said the issue was under consideration. And Business Secretary Greg Clark also called for action on the tax.

The Mail is campaigning for reforms that will give high street stores a level playing field with massive rivals such as Amazon.

As well as the tax cut for hard-hit areas, Mr Hammond is also thought to have considered axing a quirk that means thousands of shops are paying more in rates than they should do.

Every seven years, properties that pay business rates are revalued by a quango. If their value is estimated to have fallen, then the company occupying them is charged less rates. But this cut is introduced gradually over several years rather than in one go – meaning that in the meantime companies find themselves paying an artificially large amount of tax.

The Chancellor could axe this downward transitional relief and pass on any rates cuts all in one go, easing the pressure on struggling firms.

A Treasury spokesman said it did not comment on speculation on the Budget.