Companies with expensive properties are being subsidised by small businesses who are paying too much in rates.

Business rates, which are paid by more than 1.6 million businesses in England, are calculated every five years, the last time being in 2000.

A transitional arrangement exists to protect companies facing big hikes.

However, nationwide research by the Royal Institute of Chartered Surveyors (RICS) suggests this phasing-in period means those in cheaper properties are subsidising those at the top end of the scale.

The study proposes a range of measures which it claims would mean smaller business would pay less and make the system fairer and more transparent.

RICS is hoping the Government takes note of the research as Parliament is due to consider business rates in the Local Government Bill.