Sajid Javid has promised to work with the chancellor to support the small businesses that will be hit hardest by the rates revaluation.

In a statement, the communities secretary acknowledged the concerns of backbench Tories and business leaders that some firms would lose out.

He stressed the revaluation would benefit or have no impact on three-quarters of businesses, but accepted that would be ‘no consolation' to the rest.

Mr Javid admitted his late father, a shop owner in Bedminster, would have lobbied him for lower rates.

‘Now, growing up above the family shop, I saw for myself the impact that an increase in rates can have on a small business,' he told Parliament yesterday.

‘A rise in costs lowered the mood of the whole family.

‘If he was alive today I'm sure he'd be first to phone me up and lobby me about the business rate revaluation.

‘I can just imagine him telling me about the treatment of large online retailers and how that compares with traditional shops on the high street.'

An announcement on extra support for the firms facing the steepest rates increases is expected to be made in next month's Budget.