There is to be a full review of business rates as part of a range of measures designed to help UK businesses become more competitive, the Chancellor told parliament. Although no details were given, it has been reported that the government would like to see some form of sales tax replace fixed rates on business properties.
Meanwhile, the doubling of small business rate relief has been extended for a further year and any business rate increases capped at 2%. The government is also working with the Bank of England in targeting the Fund for Lending at small and medium sized businesses.
In a move designed to make it more attractive the employ young people, the government is abolishing National Insurance contributions for apprentices aged under 25. No timescale was specified, but NI contribution for all employees under 21 is abolished from April 2015.
