Balls pledges Business rate cut for 1.5 million small businesses in first budget

Shadow Chancellor Ed Balls will say today that Labour’s first Budget will cut business rates for 1.5 million small business properties – and then freeze them the following year – as part of the party’s “Better Plan for Small Businesses”. Labour claims that will save the average business around £400, and will be funded by scrapping another cut in corporation tax for large firms. Unveiling the pledge tomorrow, Balls will say:

“Every large business started off as a small business and I want to ensure smaller firms have the support they need to grow, invest, innovate and raise their productivity. Our plan will help small firms create more high skilled, high paid jobs which are vital to raising living standards.”

The party’s other small business pledges include:

• Putting small businesses first in line for tax cuts
• Tackling late payment
• Ensuring Britain has the most competitive rate of corporation tax in the G7 and continue supporting the Employment Allowance
• Establishing a proper British Investment Bank to boost lending for small businesses to grow and create jobs
• Increasing competition in the banking sector so that small firms get a better deal
• Reducing unnecessary regulation
• Delivering a long term roadmap for capital allowances and incentives for research and innovation
• Improving support for entrepreneurs and SMEs who want to grow rapidly

The small business pledge comes a day after Miliband, Balls, Umunna and others launched the party’s Business Manifesto in Central London yesterday, as Labour focuses on business for the first week of the formal election campaign.