Shops, pubs and restaurants are set to benefit from a £1,000 rates discount, but critics say the Chancellor has not gone far enough to alleviate the levy from continuing to burden businesses.
George Osborne said in his Autumn Statement that he aimed to support 'hard-working' businesses and those struggling on the high street.
Stores and eateries paying up to £50,000 a year in rates will be eligible for a discount of up to £1,000 over two years. According to the British Beer & Pub Association, the move could slash a collective £27 million in rates bills for pubs across the country.
The Chancellor also announced that the small business rates relief scheme will be extended for one year from April. This means that rates payments will continue to be waived for businesses classed as having a rateable value of under £12,000. He also confirmed an anticipated 2% cap on rates increases overall and companies will now be able to pay off the levy in monthly installments.
John Allan, national chairman of the Federation of Small Businesses said: "Action on business rates was the top priority for our members, and the Chancellor has addressed some of their concerns."
But while welcoming the Chancellor's largely anticipated measures over business rates as "welcome gestures" Matthew Lee, managing partner at South West accountants Bishop Fleming said that the steps did not address the root cause of the majority of business rates woes.
His firm has already launched an e-petition to the Government to undertake a 'root and branch' reform of business rates, which are based upon pre-recessionary commercial property values set in 2008.
"The Chancellor has applied a sticking plaster," he said, "but Mr Osborne has failed to tackle the fundamental iniquities of this tax."
Glenn Kelly, who heads property consultancy Bruton Knowles' Plymouth office said: "It doesn't solve the inequality of the rateable values set historically at a time of very different property values, particularly in the retail streets of our towns and cities.
"The whole rating system is in need of a shake up."
Truro and Falmouth's Conservative MP Sarah Newton was among those to have welcomed news of the £1,000 business rates discount, saying that with an average rateable value of £32,000, the majority of shops, pubs, and Post Offices in her constituency would benefit.
In a further shot in the arm for the high streets, a new 'reoccupation' relief that will halve rates bills for retailers taking on formerly vacant town centre shops.
Steve Collins, head of tax at accountants Francis Clark said: "It may well bring a breath of life back into the high street, benefiting places such as Torquay."
Simon Rubinsohn, chief economist at the Royal Institution of Chartered surveyors added: "The reoccupation relief will go a long way to regenerate the high street."
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