Businesses who are coming out of small business rate relief will not see an increase of more than £50 a month – or the transitional rate, depending on which is higher - in the first year.
The Chancellor also announced future consultation on business rates revaluation, which he said would come in due course.
More to follow.
Charlotte Rutter, head of marketing at TFC Homeloans, said:
"By softening the blow for small businesses which would have been battered by the revaluation of business rates this year, Hammond has saved many from going under. That would have been no good for the economy so this pragmatic thinking and the £50 a month cap should be welcomed.
"It will be interesting to see which local authorities will benefit most from the 'discretionary relief fund', but the bigger picture is that this is a sensible move to keep Britain's nation of shopkeepers in business."