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Around 80,000 larger firms would pay for the move by paying more corporation tax – almost £800m a year in total.

Mr Miliband is due to make the policy pledge in his keynote speech to his party's conference in Brighton.

 

Under current plans, business rates will rise in April 2015. However, Mr Miliband will vow that, if Labour comes to power in May 2015, rates for small companies will revert back to 2014 levels and will be frozen until 2016.

 

Labour expects that up to 1.5 million businesses with properties worth an annual rent of £50,000 or less would be helped by the change.

 

‘Cost of living crisis’

Mr Miliband is to pledge to take action on Britain’s ‘cost of living crisis’.

 

‘Too many of the jobs we're creating in this country are just too low paid, too many of the gains in our economy are just scooped up by the privileged few, including those big bonuses, and too often you are left being charged over the odds.’

 

 ‘Cost jobs’

However, business groups and the Conservatives have criticised the plan to reverse the corporation tax cut.

 

According to Conservative business minister, Matthew Hancock, a tax rise on businesses would cost jobs.

 

‘Tax rises on businesses and the same old Labour policy of more borrowing and more debt would undermine the recovery. And it's hardworking people who would pay the price with their jobs, higher taxes and higher mortgage rates,’ he said.