The Federation of Independent Retailers (the Fed) said that it “cautiously welcomed” the business rates report, which was published by the Treasury yesterday.

According to the gov.uk website, the Transforming Business Rates: Interim Report aims to incentivise investment and growth, support the high street with a fairer system and make the system fit for the 21st century.

This includes highlighting priority areas such as changing the current tax structure, enhancing Small Business Rates Relief (SBRR), improving Improvement Relief, exploring stakeholder concerns over the Receipts and Expenditure methodology, assessing the benefits of the Antecedent Valuation Date (AVD), and using the merger of the Valuation Office Agency (VOA) with HMRC “to pursue administrative changes that help ratepayers”.

The Fed said that the possible initiatives “could benefit the retail sector and will be of special interest to small independent shops”.

The Fed’s national president, Hetal Patel, said: “Overall, the retail sector accounts for about 5% of the economy but 20% of the Rates Bill, and it is right that this area is subject to reform as our members face competition from online retailers based in out-of-town locations.

“Whilst the Fed welcomes the chancellor and government’s focus in this area, we urge them to fully consider the importance of the retail sector – especially small independent shops, which are often at the heart of their communities and have rightly benefited from rates relief in the past.”