The Chancellor, Philip Hammond, announced that smaller business will receive a business rate cut for two years.

The Treasury says that small retail businesses will see their business rates bills cut by a third for two years from April 2019, saving them £900 million.

Vincent Reboul, managing director, Hitachi Capital Consumer Finance, said: “Today’s business rates announcement will provide a much needed shot in the arm for the High Street ahead of April’s £180 million business rate hike. However, while the news will be welcomed by 500,000 smaller businesses, it is unlikely to do much to relieve the pressure on our larger retailers across the UK.

“The Chancellor must consider what the future high street retailer looks like, and provide a fair deal for all retailers whether they are online, bricks and mortar or a blend of the two. Our own study found that business rates are causing a concerning investment divide between online and high street retailers. While online retailers’ prioritise positive, revenue-generating investment opportunities such as new products (41% of respondents), bricks and mortar retailers are being forced into reactive approaches such as reducing operating costs (44%).

“A digital tax is a good first step to modernise taxation of large tech giants, but there is some way to go to create a tax environment that treats all UK business fairly, frees up capital for investment and provides the right conditions to stimulate growth across the whole sector.”