Businesses have welcomed a series of moves announced by Chancellor George Osborne today in his Autumn Statement, which include a cap on business rate increases for next year of 2%.
Normally linked to RPI inflation, they had been set to go up by 3.2% in April. Reform of the system is on the agenda for the 2017 revaluation, with a discussion paper coming out next spring.

Further help on rates announced today included an extension of small business rates relief and a two-year discount of up to £1,000 for retailers with properties of less than £50,000 rateable value, intended to help small shops. In addition, a new reoccupation relief means that businesses moving into vacant properties will have their rates cut by 50%.

Mr Osborne also announced the scrapping of employer National Insurance contributions for workers under 21.

Commenting on the statement, British Retail Consortium director general Helen Dickinson said: "The Chancellor has recognised that businesses are suffering and is right to listen to retailers' concerns on business rates. The BRC has campaigned for a 2% cap and reform of the business rates system, and it is extremely welcome to hear it announced.

"With the additional measures also announced today on National Insurance, retailers will be encouraged to do even more to support the aspirations of young people across the country. Forty per cent of all jobs for those under 20 are in retail, and this will help retailers provide secure career opportunities for young people."

At the CBI, director-general John Cridland said: "The pressure on the high street has been recognised. The 2% cap on business rates and discount for very small businesses are positive, as is the reoccupation relief.

"Abolishing a jobs tax on employing young people under 21 will make a real difference and help tackle the scourge of youth unemployment," he added.

Vince McLoughlin, partner at business and tax advisory firm Russell New, also welcomed the concessions on business rates.

"Something had to be done with business rates, and by extending the relief beyond April this gives businesses of all shapes and sizes some breathing space in which to grow and boost local economies in 2014.

"The Government now brings in £27bn from business rates; this is more than council tax and fuel duty. Freezing business rates has eased the burden on businesses and given time for the tax to be reformed over the next couple of years. With greater relief, SMEs also now have an incentive to make crucial investment decisions, some of which may have been delayed waiting for this announcement."