Chancellor Rishi Sunak set out the measures in the House of Commons, before the Treasury confirmed the finer details shortly after his address.

“To support local high streets as they adapt and recover from the pandemic, the government is introducing a new temporary business rates relief in England for eligible retail, hospitality and leisure properties for 2022/23, worth almost £1.7 billion,” said the Treasury. “More than 90% of retail, hospitality and leisure businesses will receive at least 50% off their business rates bills in 2022-23.” 

Up to 400,000 retail, hospitality and leisure properties will be eligible next year, the government has said.

“This will provide support until the next revaluation, helping the businesses that make UK high streets and town centres successful evolve and adapt to changing consumer demands,” the Treasury added,

The government has hailed the move “the biggest single-year cut to business rates in 30 years”, putting aside relief provided earlier in the pandemic.

The chancellor is also freezing the business rates multiplier in 2022/23, which the Treasury claims is worth £4.6 billion over the next five years. “This will support all ratepayers, large and small, meaning bills are 3% lower than without the freeze,” the department added.

From 2023, a new business rates relief will support investment in property improvements. The Treasury said this would ensure “that no business will face higher business rates bills for 12 months after making qualifying improvements to a property they occupy”.

“This will enable businesses to adapt to meet rising demand and make improvements to their premises that support net zero targets and enhance productivity as employees return to the workplace.”

The government claims these changes will save businesses more than £7 billion over the next five years.