NO one could deny that North-East high streets are in desperate need of a boost. A retailing recovery is under way – but only in London and the affluent South-East.

Retailers in the North-East are still grappling with the fallout from the worst recession in living memory, fighting for scraps from customers with less money to spend who are increasingly shopping online.

Ask any shopkeeper what could be done to help and they will mention the burden of business rates.

Inevitably, the Government blames local authorities for not using powers to cut rates for businesses in trouble. But councils are required to fund any reductions from their own finances – and local government is facing a cash-crisis of its own.

The problem is not local authorities. It is a grossly unfair national business rates policy which punishes retailers in the North and helps firms in the South.

Business rates were last set close to the peak of the property boom in 2008. Since then, property values in the North-East have plunged.

Last autumn, the Government unexpectedly postponed a revaluation that would have reduced business rates for hundreds of small shops in the north – but pushed them up in the South-East where property values have soared.

Business rates will not now be readjusted until 2017, at the earliest.

This will save stores in London’s Bond Street £66m and leaves hard-up shopkeepers in the North-East effectively subsidising luxury retailers in the well-off South- East.

Our high streets are already blighted by too many empty properties. By 2017 it may well be too late to undo the damage.

History shows that the longer revaluations are delayed the harder they become to implement. Just look at the council tax, which is calculated on 23-year-old property values.

If we must have a system of rates based on property values, it absolutely must be founded on the most up-to-date figures available.

Until we do, a northern retail recovery looks to be a long way off.