Sajid Javid says his shopkeeper father would have lobbied him over business rates

Sajid Javid has said that his shopkeeper father would have lobbied him about business rate rises as he vowed to help small businesses that have been hardest hit.

The Local Government Secretary confirmed that Philip Hammond, the Chancellor, will use his Budget to "provide further support" to businesses facing steep increases.

He also vowed to "level the playing field" and raised concerns that online retailers seeing business rates fall while on the high street they are rising. His speech comes just days after he triggered a furious backlash from Tory MPs after blaiming criticism of rate changes on a "relentless campaign of distortion and half-truths".

Mr Hammond is expected to use his Budget to pay hundreds of millions in compensation to small businesses facing huge hikes in their bills.

It came as an alliance of retailers and business leaders warned that Britain business rates are the highest in Europe and risk acting as a "barrier to investment" after Brexit.

It means many businesses in the South East will face soaring rates while others in areas where High Street rental prices have fallen will benefit.

Downing Street denied that it was in "chaos" over the issue after the Government's concession to Consevative MPs became mired in confusion.

Business rates UK map

Theresa May signaled that the Government is preparing to help businesses by saying she has instructed Mr Hammond and Mr Javid to ensure that there is "appropriate relief" for firms hardest hit by the changes.

However the Prime Minister's Official Spokesman subsequently suggested that there would not be any extra money to help businesses beyond an existing £3.6billion transition fund.

Mr Javid, who grew up in a flat above his father's cornershop, later clarified that the Government is prepared to do more.

He said: "Growing up above the family shop I saw for myself the impact an increase in rates can have on small businesses. "

A rise in costs lowered the mood for the whole family. Even as a child I knew that it wasn't good when I found a stack of bright red final reminders hidden away at the back of the draw.

"My Dad was never shy about showing what he thought about out of town retail parks and how that took away customers from his shop in the high street in Bedminster. If he were alive today I'm sure he would be the first to phone me up and lobby me about the business rates re-evaluation.

"In particular I can just imagine him telling me about that treatment of large online retailers and how that compares to the more traditional shops on our high street."