Business rates will be slashed to protect swathes of corporate Britain from surging energy prices under plans being drawn up by Conservative leadership frontrunner Liz Truss.
It is thought the government could extend business rates relief from premises with a rateable value of £15,000 to those valued at £25,000, meaning many thousands more companies would be spared from the tax.
The plans would be for England, but would generate Barnet funding consequentials to allow the Scottish Government to follow suit.
The Telegraph confirms that Ms Truss' team has been discussing the proposals with industry lobbyists as she prepares to become Prime Minister next week if she wins the support of Tory members.
Nadhim Zahawi, the Chancellor, has also met with representatives from industry groups this month.
Following months of extremely high wholesale gas costs, the price cap on average energy bills is to climb by 80%to £3,549 in October.
Small businesses are facing an even bigger crisis next month, when many corporate energy contracts will also come up for renewal.
Unlike for consumers, there is no price cap to protect them from surging wholesale markets - meaning many will be stung with a fivefold rise in their costs.
A source said Ms Truss' team was receptive to the idea of expanding business rates relief, amid hopes that the policy could feed into the government's Levelling Up agenda, and had been consulting business groups.
The new Prime Minister will be announced on Monday.