MPs are to launch a new inquiry into the heavily criticised business rates system amid warnings that a further 100,000 shops will close this year.

Nicky Morgan MP, chair of the Treasury Select Committee, said the inquiry would scrutinise the changes in reliefs and allowances that had already been announced by the Government, the burden on companies and the “behaviours it drives in businesses”.

Business rates, which generate around £32bn for the Government, have been accused of creating an unlevel playing field between traditional retailers, which have hundreds of stores across the country, and booming online retailers, which pay much less. A number of retailers, including Marks & Spencer, have blamed the business rates system for store closures, resulting in hundreds of job losses.

Ms Morgan said business rates would be measured against the yardstick of “good tax policy”, which must be fair, support growth and encourage competition; provide certainty; and be coherent.

“We’ll examine how the current system is working and consider whether an alternative system, for example a land-value based tax, may help level the playing field between retailers," she said.