The government is undertaking a fundamental review of the business rates system and said it is currently considering responses to the call for evidence issued earlier this year.
As a result, it will not be increasing the business rates multiplier in 2021-22.
“The government has decided not to proceed with a reset of business rates baselines in 2021-22 and will maintain the existing 100 per cent business rates pilots for a further year,” it said.
“In order to ensure that any decisions best meet the evolving challenges presented by Covid-19, the government will outline plans for 2021-22 reliefs in the New Year,” it added.
Local Authorities will be fully compensated for the reduced income, which is estimated to be around £125m next year.
The total could grow to £575m if the move is maintained over the following four years.