A Bradford business organisation has welcomed a potential freeze in business rates which Chancellor George Osborne is expected to announce in his Autumn Statement today – a move it says is long overdue.

Bradford Chamber of Commerce has called on the Government to reform the business rates system and sees a cap as an interim measure.

Mike Cartwright, the Chamber’s policy executive, said: “We called for a major rates reform this time around as we believe that’s what could best help businesses right now and it is long overdue. Capping rises is welcome but hardly solves the fundamental problem, which is that the system can’t take account of changing economic circumstances.”

The expected cap follows a report showing that 17,500 Bradford businesses paid £163 million in business rates payments last year.

According to business rates specialists CVS, increasing business rates are crippling many companies. It said that if rates rose by the September Retail Price Index of 3.2 per cent, as originally planned, Bradford firms would face paying another £5.2 million from next April.

The Chancellor is expected to cap the rise to two per cent.

CVS said, that in spite of the burden of business rates, about 80 per cent of local businesses have yet to appeal their rateable value, in a bid to reduce bills.

David Ford, CVS regional director, said: “CVS supports the need for immediate Government action on rates to make the system fairer for businesses. The Government can make a real and immediate impact by improving the business rates appeals system.

“Statistics released earlier in 2013 reveal that there are still over 180,000 outstanding business rates appeals in the system, equating to a burden of over £2 billion on UK businesses, who can wait up to 18 months for an appeal to be resolved.

“This is too long for many and unacceptable in this digital age.

“Businesses in Bradford should consider an appeal as a way of reducing their rates liabilities.”

George Osborne is expected to confirm in today’s Autumn Statement that rate rises will be limited to two per cent instead of being linked to inflation, after strong lobbying from a number of organisations.

John Longworth, director general of the British Chambers of Commerce, said: “It is heartening that the Chancellor appears to be listening to business and is planning to limit the damage caused by relentless business rates increases.

“But a tax rise is still a tax rise.

“The business rates system is still iniquitous, still broken, and still in need of fundamental reform.”