The government is being called on to introduce a London Small Business Rate Relief after moving the goalpost which would have exempt 600,000 businesses from the payment.

Following a revaluation of the rates, retailers in London and the south east are facing an increase of more than 20%, which means many will no longer benefit from the relief proposed by former chancellor George Obsorne in the spring budget.

The NFRN says its research shows in 2015 a 775sq ft newsagent in London paid £35,743, while a 764sq ft newsagent in Manchester paid £2,376. It added in 2017 the same London store will pay more than £55,000.

It is calling for the threshold for 100% rate relief to be set at £20,000 in inner London and £16,000 for outer London.

NFRN chief executive Paul Baxter said: “For many smaller retailers there was much delight when the spring Budget revealed that from April next year they would be paying no business rates at all.

“For many of those in the London area this has turned to dismay as the new business rate revaluations means they are no longer eligible.”

The call comes as new chancellor Philip Hammond is set to announce his first Autumn Statement on Wednesday.