Chancellor Cuts Business Rate Rise

The Chancellor, Alistair Darling, has gone back on plans to increase business rates by 5% from 1 April. He said businesses would face only a 2% rise this year and the remaining 3% would be smoothed out over the following 2 years.

Mr Darling said "I believe this will provide real and genuine help for businesses in this country".

The rise was linked to the Retail Price Index last year, but RPI has now fallen to zero and it is expected that it will fall further.

This announcement applies only to England at present.