Small businesses have given a muted reaction to the new system of calculating business rates.

In a statement earlirer this week, local government minister Nick Raynsford said the orginal business rates plan placed a "disproportionate burden" on small businesses and that the rate relief scheme, designed to protect them, should be extended.

The government had proposed a relief of 50% for ratepayers occupying single properties with a rateable value of under £5,000.

This declined on a sliding scale, reaching 0% relief at a rateable value of £10,000.

A buffer zone was also proposed so that business properties worth between £10,000 and £15,000 would not have to contribute to the relief.

The latest  version also states that a businesses will be eligible for relief if all its main properties fall within the threshold, and that other properties are under a rateable value of £2,200. The relief will apply to the main property only.

In addition, Raynsford said the government would raise the threshold for the buffer zone in London to £21,500 , where property is more expensive.

"This extends the relief to more ratepayers while not increasing the financial burden on large ratepayers or introducing complex administrative arrangements," said Raynsford on Tuesday.

However, small businesses believe more safegaurds are needed to help them adapt to the new system. The British Retail Consortium (BRC) and the Forum of Private Business (FPB) both gave the measures a tepid reception.

BRC director general Kevin Hawkins said: "The BRC believes that a transitional scheme of rate relief is necessary for the vitality of retail in the UK.

"We are glad we have helped persuade Ministers to adopt a scheme with increases capped at generally acceptable levels, although the scheme announced today still does not offer the level of protection we saw in the 2000 list."

FPB chief Nick Goulding added: "The FPB still believes that the small business rates relief scheme needs to be widened so that more small businesses will benefit from fairer business rates."

The new rateable values will come into force early next year. A consultation on the subject of busines rates ran between June and November this year.