George Osborne delivered a “welcome boost” for small business in his budget with a range of tax cuts but admitted to missing targets for UK growth.

The Chancellor announced measures which would see 600,000 firms pay no rates at all.

Under plans revealed in his eighth budget, small business rate relief will increase from £6,000 a year to £15,000, while corporation tax will be reduced to 17% from April 2020.

Craig Harman, a tax specialist at Perrys Chartered Accountants in Tunbridge Wells, said small businesses "look to be the big winners from the budget".

Nick Threlfall, senior partner at Watson Day Chartered Surveyors in Chatham, said: “Business rates represent a significant cost to businesses of all sizes and potentially hold back expansion plans or moves to better premises.

“The proposed changes to the business rates system from April 2017 will come as a very welcome boost to many small businesses which will be taken out of the system completely and to many more SMEs who will have a reduced burden as a result of the extension of transitional relief.”

"By not hiking fuel duty Osborne has ensured that £5 billion is not taken from consumer spending in this Parliament..." - Howard Cox, FairFuelUK

The Chancellor revealed an increase in the personal tax-free allowance to £11,500, froze duty on beer, cider, whisky and fuel, and reduced capital gains tax from 28% to 20% and moved it down to 10% for basic rate payers.

Howard Cox, founder of FairFuelUK, based in Cranbrook, said: “By not hiking fuel duty Osborne has ensured that £5 billion is not taken from consumer spending in this Parliament.

“His decision has ensured continued growth in GDP, low inflation and new jobs will not be compromised, with added benefits of more VAT, income and corporation tax revenue too.”

However, Mr Osborne said the Office for Budget Responsibility had reduced its predictions for UK growth this year from 2.4% to 2%. The economy is expected to expand by 2.2% in 2017 and 2.1% for three years after that.

He also angered landlords by exempting homes from cuts to capital gains tax.

John Elliott, managing director at Tonbridge-based house builder Millwood Designer Homes, said: “What the Chancellor said today was old hat. Disappointingly, nothing new or valuable for the property market was introduced.

“I still think that it is wrong to add a 3% tax onto second homes or buy to let. It will most likely have the effect of subduing the property market when the Government want it to be more robust.”

Nicola Plant, a partner at law firm Thomson Snell & Passmore, based in Dartford and Tunbridge Wells, said: “The Chancellor’s decision to cut capital gains tax rates by 8% on all but residential property and carried interest is a clear indication of the government’s wish to discourage future speculation in the buy-to-let market, halting continued growth in prices in that sector and potentially freeing up more properties for first-time buyers.”