The Chancellor has announced a review of business rates in order to give help to the high street as it struggles to compete against online businesses.

Help for smaller companies is also one of the announcements expected when George Osborne presents his autumn statement today.

Business rates are calculated according to the rental value of the property. They have formed a contentious issue in the industry, with retailer body the British Retail Consortium (BRC) and others campaigning for reform. BRC director general Helen Dickinson said: “The need for this is clear; over the last three years the increase in business rates for retail has outstripped the fall in retail investment. Enabling retail investment to return to pre-recession levels is the equivalent of over 40,000 jobs.”

The Treasury has also said it will guarantee £500 million of bank lending and an extra £400 million to extend a funding scheme for small and medium-sized businesses.