MINISTERS are facing a backlash over long-delayed plans to update business rates for the first time in seven years, which are set to come into effect this April.

Out-of-date rates need to be brought in line with property values to better reflect the cost of doing business across the country.

Last week, the British Retail Consortium and the Federation of Small Businesses both wrote to the Government labelling the system unfair and outdated. Yesterday the chief executive of Sainsbury’s, Mike Coupe, added his voice to those calling for fundamental reforms.

Perhaps we should not be surprised that powerful business groups have reacted with horror.

No one likes to pay taxes.

In taxation there are winners and there are losers. For the past seven years the losers have been mostly in the North-East.

London’s retail economy has been growing strongly for several years – thanks, in part, to the business rates system. Shops across the North have remained empty because their business rates were set near the height of the last property boom.

In 2014, the Government cynically postponed the revaluation because it knew rates would rise in the South and fall in the North if they were readjusted to reflect current property values.

This resulted in a system where small retailers in the North-East have been effectively subsidising luxury brands in London. Where were the powerful business voices calling for reform then?

We agree with Mr Coupe that the system is in need of reform to reflect the move to online trading but anyone calling for the changes to be scrapped is condemning the North-East to more misery. Government figures show bills across the North are due to fall by ten per cent – a reduction that will give our high streets a much-needed shot in the arm.