SMALL businesses in England that have taken a hit from coronavirus have been thrown a lifeline in today's Budget with the government promising to abolish business rates for some.

Chancellor Rishni Suknak says he will scrap business rates for the coming year for nearly half of all businesses in England.

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The Conservative manifesto had promised small businesses, such as shops, cinemas, restaurants, and music venues, an increase in their business rates retail discount to 50 per cent.

But as these companies have have been particularly badly hit by Covid-19, Mr Sunak says he's today taken the "exceptional steps" of abolishing business rates altogether for a year.

This effectively ups the discount to 100 per cent for companies in the retail, leisure, and hospitality industry with a rateable value below £51,000.

Mr Sunak says this will save business up to £25,000 in a tax cut that's worth a collective £1billion.

Its part of a three-point action plan revealed to tackle the impact of coronavirus on the economy and people's personal finances.

In addition, the government will refund coronavirus-related sick pay that's been shelled out by small and medium-sized enterprises.

This will be granted to companies with under 250 employees and the government says it will pay this in full for up to 14 days of sick leave.

Mr Sunak added that this could provide over £2billion for up to 2million businesses.

It comes as 20 per cent of the work force are expected to be unable to work at any one time due to coronavirus.

Plus, a coronavirus loan scheme will be set-up to help small and medium businesses. This will see banks offering loans of up to £1.2million.

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