Business organisations in Dorset have reacted positively to the government’s announcement that rates will be scrapped for thousands of small firms.

As part of yesterday’s budget, Chancellor Rishi Sunak declared that businesses with a rateable value of under £51,000 - including shops, cinemas, restaurants and music venues - will not be required to pay this tax in the next financial year.

This comes following a previous government announcement that such businesses would get a 50 per cent discount for the year, up from 33 per cent.

Claudia Moore, chief operations officer at Weymouth BID, welcomed the Chancellor’s announcement, said: “We are delighted that after the government announced that they were considering a reduction of 50 per cent for small business that they have taken the further step of abolishing these rates for a year. In these times of uncertainty due to Brexit and coronavirus it is welcome news.”

Craig Oakes, president of the Weymouth and Portland Chamber of Commerce, said: “I’m sure the devil will be in the detail regarding this budget news but a scrapping in business rates for a great many of the small business sector will be a welcome relief.”

Mr Sunak added that the business rate discount for pubs with a rateable value below £100,000 would also be increased from £1,000 to £5,000.

It was also announced that £2.1 billion is to be allocated for grants of £3,000 to businesses that qualify for small business rates relief.

In addition, the Chancellor launched a review in the future of business rates.

Ian Girling, chief executive of the Dorset Chamber of Commerce and Industry, said: “Shops, cinemas, restaurants and music venues with a rateable value of less than £51,000 will pay no business rates in the coming year.

“And this will also be extended to museums, art galleries, theatres, caravan parks, gyms, small hotels, B&Bs, sports clubs, nightclubs, clubhouses and guest houses.

“Furthermore, the Chancellor announced a review later this year into business rates, which is something that we and the British Chambers of Commerce have been campaigning for.

“We also welcome extra money for research and development because we have some fantastic businesses in Dorset who will benefit from it.”