A radical review of the business rates system is required to save the nation's high streets, according to West Midlands Mayor Andy Street.
Retail industry veteran Mr Street, speaking before the Treasury Select Committee at Parliament, warned that business rates currently fell disproportionately on the manufacturing and retail sectors.
Mr Street was managing director of high-end retailer John Lewis before quitting his post to fight the 2017 election to become the West Midlands' first directly elected mayor.
He also warned that measures bought in by Chancellor Philip Hammond which were intended to help struggling businesses were not sustainable.
A full review of business rates is now required, according to the mayor, which should include reduced rates for new and expanding businesses and 100 per cent relief for public sector organisations.
These could include NHS buildings or further education colleges which bring their services into high street units.
He said he wanted to turn town centres into "free trade zones", with enhanced powers for local authorities and more support for shops and local businesses.
"Our town centres, and in particular our high streets, are the heart of where we live and they are having a tough time," Mr Street said.
Most Read
"We need to think originally to come up with practical solutions to help them thrive again.
"This 'free trade zone' idea would create the special conditions that our town centres need, including reducing business rates, special planning rules and new town centre funding from a tax on online businesses.
"Here, in the West Midlands, we are already making progress with our Town Centres Programme but there is much more still to do so that we can all be proud of our high streets once more."
It would mean councils had the power to grant business rate relief for new or expanding businesses.
And special planning conditions could be introduced when needed such as to allow rapid change of use on high streets or to allow flats to be built in town centres quickly.
Mr Street's proposals also include increasing taxes on online businesses such as Amazon to pay for additional policing, infrastructure and public realm spending such as parks.