Chancellor, George Osborne confirmed he is “more than doubling” small business rate relief in England from 50 per cent to 100 per cent in this afternoon’s Budget to the House of Commons.
Within the Budget statement, it confirms that small firms with a property with a rateable value of £12,000 and below will receive 100 per cent relief.
Meanwhile businesses with a property with a rateable value between £12,000 and £15,000 will receive “tapered relief”.
The Government is also expected to raise the threshold for the standard business rate multiplier from a rateable value of £18,000 to £51,000.
The Chancellor stated that the outcome of the new relief will mean 600,000 small businesses would not pay a penny in business rates from next year, while a further 250,000 would experience a fall in their rates.
“This is a Budget for small businesses. Today I am more than doubling small business rate relief, and I’m more than doubling it permanently,” said Osborne.
The Association of Convenience Stores (ACS) has welcomed the change, with small firms benefitting in the face of “rising costs”.
James Lowman, chief executive, ACS, said: “The increased small business rate relief threshold will be a welcome measure for thousands of local shops who are facing rising costs in other areas of their business.
“This measure will also significantly reduce the burden on the VOA, as more stores are taken out of paying rates altogether.
“We welcome the move from RPI to CPI for annual business rate increases but urge the Chancellor to cap rates increases in line with the government’s two per cent inflation target.”
Jo Nockels, senior training and communications manager, TaxAssist Accountants, said: "For those based in England, more than doubling the threshold for claiming small business rate relief, from £6,000 to £15,000, will mean that many small business owners will no longer pay any business rates for their office or shop premises.
"This will be a major boost for many small businesses and will go some way to help level the playing field when competing against online only product and service suppliers.
"For many small businesses, particularly those which deliver products and services to our homes, cars and vans are essential not a luxury, so the continued freeze on fuel duty is further good news."
For a full summary of this afternoon's Budget 2016 and the highlights that relate to the UK's small business community click here.