Chancellor in last-ditch business rates u-turn

Date: 1st April 2009

Small businesses will only need to pay a two per cent rise in business rates this year and not the initially proposed five per cent.

Chancellor Alistair Darling unveiled the last minute change of heart in the House of Commons yesterday (March 31st) following extensive pressure from several trade organisations.

However, he also suggested that the remaining three per cent could be "smoothed out" across 2010 and 2011.

Mr Darling said: "I can tell the house that businesses need pay only two per cent of the annual increase this year and they can pay the remaining three per cent smoothed out over the following two years."

But according to the Daily Telegraph, the business rates relief will not be automatic and may only become available in August.

Meanwhile, from today the Solutions for Business initiative will see all 3,000 government support services for companies rolled up under the Business Link platform.