The Chancellor's Autumn Statement has been welcomed by Bath businesses.
In a 50-minute speech George Osborne announced a ream of measures which he believes will help the economy continue its tentative recovery.
In his pre-budget address Mr Osborne said the UK economy was not out of the woods.
"Britain's economic plan is working but the job is not done. We need to secure the economy for the long term and the biggest risk to that comes from those who would abandon the plan."
Mr Osborne said £1 billion would be made available to unlock housing developments, National Insurance contributions would be scrapped for under 21s, fuel duty would be frozen again next summer and the pension age is to go up to 68 by the late 2030s.
Small businesses also received a shot in the arm with the announcement that business rate rises will be capped at two per cent next year, business rate relief will be extended for another year and there will be a £1,000 discount on business rates for small businesses.
Mr Osborne went further saying new loans would be made available for startups, along with tax relief for investment in social enterprises, and a 50 per cent discount on business rates for the reoccupation of empty shop units.
Chairman of Bath's Federation of Small Businesses, Angela MacAusland, said members would welcome the business rate cap.
"That is one of the things we have been pushing for to help small businesses. Some businesses are being charged large amounts of business rates based on the size of the building rather than turnover.
"Anything we can do to help the high street and small businesses has got to be positive.
"If you look at all the small businesses added together, especially in Bath - we make up over 90 per cent of business in the city. They've finally recognised the economic growth we are experiencing small business are going to be a vital part of it - we are significant in the economy."
Partner of chartered accountants Monahans Dominic Bourquin, said the Autumn Statement included a lot for the city's businesses community.
"There's an acceptance that local and small businesses are struggling. Employment numbers are better but they have recognised there is a problem with young people in particular getting into work - abolishing NI contributions for under 21s will help.
"What I think is going to really help local shops and businesses is over the next two years, if the rateable value is up to £50,000, then a business gets a £1,000 discount - this will help small retailers."
