Chancellor Gordon Brown has announced a series of Budget measures to help small businesses set up in deprived areas.

He indicated his Budget on April 17 would include stamp duty exemptions on commercial properties in poor areas, tax breaks for firms which invest in deprived communities and a flat-rate VAT scheme, cutting the cost of compliance for small businesses.

The Chancellor flagged up the measures in advance because of the late Budget this year so firms would be notified before the end of the current tax year.

It followed the announcement of tax breaks worth an estimated £500-£600 million for big business.

Mr Brown said he wanted to create a more favourable environment for firms setting up in areas of high unemployment.

He said: "The small firms of today are the big firms of tomorrow. I want people in disadvantaged communities to see the enterprise culture, too often restricted to the elite, is open to them - not least in high unemployment communities where employment has for too long passed them by.

"The Government has a special responsibility to remove the barriers that hold small firms back and create a level playing field in which small firms have an equal opportunity to succeed and grow."

The measures include:

A community investment tax credit,
offering tax relief for investment in enterprises in disadvantaged areas.

Extending the disadvantaged areas' stamp duty relief to commercial transactions incorporating six or more dwellings and commercial leases.

Introducing a flat-rate VAT scheme for firms with a turnover of up to £100,000, cutting the compliance costs for 540,000 businesses by up to £1,000.