The UK's 'archaic' business rates system needs total reform as well as a review, according to the heady of policy at the Federation of Small Businesses.

FSB policy chairman Mike Cherry made the remarks to IBTimes UK in response to the chancellor George Osborne announcing a review into the business rates system in his 2014 Autumn Statement.

The chancellor, as part of the 2014 Autumn Statement, said that small business rates relief will be doubled for another year to give high-street shops, pubs and cafes a £1,500 discount on business rates.

The Conservative MP said the move will affect around 500,000 small companies in the UK.