Chancellor to promise rates review

CHANCELLOR George Osborne is expected to use his Autumn Statement today to flag more cheap money for the banking system and promise to overhaul business rates.

Despite stronger economic growth he is grappling with weaker-than-expected tax receipts because of an increase in low wage jobs and self-employment.

This means he will be forced to admit a deficit of around £90bn, rather than the target of £40bn originally set in 2010.

But the Coalition is expected to recommit to eradicating the structural deficit by 2017-18.

On business rates, the Chancellor is expected to promise a review into the way they are calculated, to be completed by early 2016.

The Treasury has also revealed that measures to strengthen lending to small and medium-sized business (SME) would be a key feature. Around £400m will be used to expand and extend the British Business Bank’s venture capital programme, the Enterprise Capital Fund.

The Chancellor will also commit to further funding for the Enterprise Finance Guarantee scheme, allowing it to guarantee up to £500m of new lending in the next year.

Meanwhile, the Funding for Lending Scheme, which gives cheap money to the banking system to encourage lending, will be extended for a further year.

TheBusinessDesk.com will be reporting on the Chancellor’s statement later today in association with accountancy group Grant Thornton.