Labour leader Ed Miliband has promised that he will reverse the planned hike in business rates if his party wins the next election.

The pledge, to be officially announced at the Labour party conference in Brighton later today, is anticipated to benefit £1.5 million pubs and shops. It will be paid for by reversing the planned cut in corporation tax.

However, the Institute of Directors criticised the scheme for benefitting only very small firms, whose annual rental value is £50,000 or less, whilst the cut in corporation tax could deter foreign investors.