Businesses could benefit from potential temporary tax cut measures and the latest levels of inflation dropping to their lowest in more than two years.

Chancellor George Osborne said he “welcomed” comments from global financial watchdog, the International Monetary Fund (IMF), suggesting cuts to VAT or National Insurance could boost economic growth and help smaller businesses survive.

Christine Lagarde, managing director of the IMF, said Britain had done well with its programme to cut its budget deficit so far but "unfortunately economic recovery has not taken hold". The IMF is also suggesting measures such as cutting interest rates even further to ensure SMEs can acquire loans, in addition to the government increasing its “monetary easing” by printing more money.

The latest statistics from the Office for National Statistics offer additional hope to easing the country’s financial situation, revealing the Consumer Price Index (CPI) rate of inflation fell to 3% in April. This is its lowest level since February 2010, and has improved since the 3.5% rate in March.

Since Prime Minister David Cameron came into power, it is the first time the rate has been within a percentage point of the Bank of England’s 2% target.

Chloe Smith, economic secretary to the Treasury, said: "Inflation is down and back within the target range for the first time since 2010, which is good news and will provide some welcome relief for family budgets."