Philip Hammond plans to make the revival of high streets the centrepiece of his budget

Almost half a million small retailers will have their business rates cut by a third for at least a year as part of government efforts to reinvigorate high streets.

The chancellor will use the budget on Monday to provide £900 million of rate relief for small business and a £650 million fund for local authorities to redevelop town centres. Planning rules will be relaxed to allow shops to be converted into offices, homes or a mixture of retail and office space.

High street retailers are under pressure from online stores, which do not have the same rents, business rates and staff costs and can sell the same goods more cheaply. Consumers have been hit by the cheap pound, which has driven up retailers’ costs.

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