A call to give local authorities the power to set Supplementary Business Rates (SBRs) above a national capped level has been rejected by the government.
Ministers have dismissed the Communities and Local Government Committee's suggestion that local authorities be given free rein to levy extra rates on local businesses.
The decision to maintain a cap will come as a relief to retailers.
Committee chairwoman Dr Phyllis Starkey said the government lacked a convincing vision of the future, and its proposal would "hobble local authorities' ability to raise sums that would make a meaningful contribution to the economic development of their area."