Telford & Wrekin Council’s share of a national pot of money is £685,000, which will be distributed to local businesses over the next four financial years.
Businesses with a rateable value of more than £15,000 and less than 200,000 are eligible to receive funding through the scheme.
It is front loaded, meaning that the council will get £400,000 in the first year, £194,000 in 2018/19, £80,000 in 2019/20 and £11,000 in 2020/21.
The government has advised that there is no scope to roll money forward to future years if there is an underspend.
In April this year, the rateable value of businesses was changed due to a revaluation by the Government’s Valutation Office Agency.
The temporary business rates relief scheme will provide financial support to businesses whose properties were subject to an increase in rateable value of more than five per cent as a result of the revaluation.
It is anticipated 337 businesses in Telford and Wrekin will benefit from an award of discretionary relief.
The money will be automatically awarded so there is no need for them to apply.
Telford & Wrekin Council's finance chief, Councillor Lee Carter said: “This scheme has been designed to provide temporary relief to small and medium-sized local businesses and it is obviously something that we welcome.
"However it is regrettable that it has been decided that it is only a temporary scheme.
“Our business rates team actively supports our local businesses to try and ensure that they benefit from all reliefs to which they are entitled.”
The scheme is expected to be approved by Telford & Wrekin Council’s cabinet when it meets on September 14.
Businesses already benefit from a range of relief schemes to reduce the burden of business rates.
These include small business rate relief, charitable relief, pub relief and transitional relief.