Business rates relief for small businesses will “more than double” during the next budget period.
The Chancellor, George Osborne, announced that he was raising the threshold to £15,000 for the lower rate (up from £6,000) and to £51,000 got the higher band (up from £18,000).
He said the measures would mean around 630,000 small businesses would be removed from business rates altogether, and they would collectively save £7 billion per year.
In his budget statement, delivered in parliament today, George Osborne said: “A typical corner shop will pay no business rates to get rid of tax for small businesses in a nation of shopkeepers.” He said that the Conservatives are “on your side”.
Further measures in the new policy include a system where future increases will be tied to the CPI (consumer price index), and that commercial stamp duty for smaller businesses will be reduced.