The chancellor has announced the small business rate relief threshold will be increased from £6,000 to £15,000.

Unveiling his eighth budget, George Osborne also revealed that future business rates increases will be based on CPI rather than RPI, which will mean more accurate rates bills for retailers.

In his Budget speech, Mr Osborne said: “A typical corner shop in Barnstaple will pay no business rates, a newsagent in Nuneaton will pay no business rates.

“This Budget gets rid of tax for small business.”

He said 600,000 small businesses will not pay business rates, which could save them £6,000 a year.

ACS chief executive James Lowman said: “The increased small business rate relief threshold will be a welcome measure for thousands of local shops who are facing rising costs in other areas of their business. This measure will also significantly reduce the burden on the VOA, as more stores are taken out of paying rates altogether.

“We welcome the move from RPI to CPI for annual business rate increases but urge the chancellor to cap rates increases in line with the government’s 2% inflation target.”

Osborne’s other key, and less-convenience friendly, announcement during the budget was the announcement of a sugar tax on soft drinks. Read more here.