Small businesses won't pay NI

Around 450,000 small businesses - a third of all employers - will pay no employer National Insurance next year and corporation tax will be cut by 1% by 2015, George Osborne has announced.

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  1. Laura Kuenssberg

Cut in corporation tax but nothing on business rates

The Chancellor delivering his Budget Credit: PA Wire/PA Wire/Press Association Images

Corporation tax will go down to 20p by 2015 - that will be very welcomed.

It is not entirely unexpected but it will be popular with business. It does not sound like there will be any action on business rates though.

Remember that businesses pay more than twice as much in other taxes than they do in corporation tax.

The problem is that Infrastructure money, childcare support and corporation tax are all measures coming in after 2015. Those clamouring for action now will not be happy.

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