Recent media headlines have highlighted the fact that this Christmas was extremely disappointing in terms of retail sales on our high streets.

What’s more, recent figures from the BBC Data Unit show that £1 billion in empty premises business rates relief is applied in England and Wales each year.

This level of relief on empty premises is just the latest evidence of the negative impact of business rates increases on the most vulnerable businesses in our towns and cities.

As one of the main costs of doing business, business rates take no account of affordability. Whether a business is small or large, profitable or not, business rates focus purely on the rateable value of the premises from which they operate.

It is an antiquated and unfit-for-purpose system that is in urgent need of a radical rethink. The very fact that successive Governments have had to implement various business and retail rates rebate schemes is further evidence that the current system is well past its sell-by date.

READ MORE: Flats over shops to breathe more life into High Street

Sensible reform of the system would result in far fewer empty shops in our towns and cities – and would reduce the need for retrospective reliefs. Failure to act would inevitably lead to yet more closures on our high streets.

That is why FSB is calling for the scaling back of this unfair tax, which has damaged and which continues to damage, small firms all over the country. Instead, we want a system that actively encourages a mixture of thriving small businesses on diverse high streets, which serve and add value to local communities.

Promisingly, the new Government has promised a wholesale review of business rates. Simplifying the system and taking more of the small firms that need support most out of it must be the priority. Policymakers need to remember that it’s these businesses that inject competition and diversity into our business landscape.