A THIRD of high-street firms in England have missed out on promised business rate relief, according to new data.

At the last budget, the Tories claimed that 400,000 retailers, leisure and hospitality venues would be able to claim a 50 per cent discount on the commercial property tax, but via a Freedom of Information request to councils, property specialists at Gerald Eve found that just 272,000 have done so.

It comes as the industry experts warn that businesses could face a devastating £4.7 billion total increase in business rates next year unless action is taken.

The cap of £110,000 placed by the former chancellor Rishi Sunak on how much each business can receive is blamed for companies missing out on the discount. The cap means that retailers and hospitality firms with multiple sites cannot benefit other than for their first few properties.

Usdaw general secretary Paddy Lillis told the Star: “The current business rates system is not fit for purpose as it places bricks & mortar retailers at a significant disadvantage to online retail.

“In effect, this amounts to nothing more than an unfair shops tax and action has to be taken to level the playing field. 

“A 1 per cent online sales levy could raise around £1.5bn and fund a 20 per cent cut in the current outdated and imbalanced commercial property tax.”

Jerry Schurder, business rates policy lead at Gerald Eve, said: “In the 2019 manifesto, the Conservatives promised a fundamental review of rates and a reduction in the burden on the retail sector. But three years later, as good as nothing has been delivered.”

Last year Labour pledged to scrap the business rate and force tax-dodging big tech firms to pay more.