Hundreds of retailers in Lichfield and Burntwood are to get a third off their business rates.
Lichfield District Council says the policy change will benefit 270 shops, restaurants, cafes and bars.
The move will see companies which operate from a property with a rateable value of less than £51,000 a year see the cut to their bill.
It comes after the Government announced in last year’s Autumn Budget that it would provide a business rates retail discount scheme until 2021.
In order to implement the reduction, the council’s Cabinet approved an amendment to local policies.
Cllr Rob Strachan, Cabinet member for finance and procurement, said: “We know that consumer habits are changing and that this is a challenging time for the high street.
“This reduction eases the financial burden on businesses in our city, town centres and villages, giving them more scope to adapt to the changing retail landscape.
“Processing the discount automatically also removes an administrative burden, so our local businesses can carry on doing what they do best.
“Our aim is to maintain vibrant and economically successful high streets and shopping centres, and this discount scheme will help boost local retailers across the district.”
Eligible businesses will receive a new business rates bill with the discount applied and will have any overpaid rates refunded.