Small firms hail ‘game-changing’ business rates relief package

Small businesses last night praised a package of “game-changing” measures to boost Britain.

Jeremy Hunt has promised to “end the scourge of late payments” for small suppliers alongside plans to offer business rates relief and tax cuts for the self-employed.

The Federation of Small Businesses (FSB) said it would “help build future prosperity”.

But big companies, which offered no help with fees, were less impressed when one CEO lamented “a missed opportunity.”

The Chancellor said companies trying to bid for government contracts of more than £5m will have to prove they pay invoices within an average of 55 days from next April. That “will be progressively reduced to 30 days,” Hunt added.

It also set out business rates relief worth £4.3bn over the next five years.

Some retail, hospitality and leisure businesses will also benefit from an extension to a 75 per cent rates relief scheme – the move will save a typical independent pub more than £12,800 next year. And Hunt is going to restructure national insurance.

The Chancellor said the changes would save 2 million self-employed people £350 a year from April.

It announced plans to cut Class 4 NI contributions from 9 per cent to 8 per cent and will scrap the Class 2 band.

FSB policy chair Tina McKenzie said: “This revolutionary package for small businesses shows the prioritization of pro-growth measures where they will do the most good, while getting the best return for taxpayers’ money.

Small businesses and the 16 million people who work in them are the path to future growth that will raise living standards.’

But large companies face rising activity rates. Marks and Spencer boss Stuart Machin said: “The Chancellor missed the opportunity to fix the broken business rates system.”