Tax changes coming into effect this week will see the biggest cuts to personal and business taxes for two decades and the most important in a generation. The action the Government has taken to support business and grow the economy will be worth £11 billion in 2014-15. This includes action to cut employment costs, business rates and fuel costs, as well as considerable reductions in the main rate of corporation tax. Today: Corporation tax will be cut from 23% to 21%. It has fallen from 28% in 2010 and will fall further to 20% in April 2015. The Annual Investment Allowance – tax relief for investment in plant and machinery – is doubled to £500,000, and will be extended by a further year to December 2015. This means 99.8% of businesses will pay no tax on capital investment. Business rates will be reformed so that: The annual increase is capped at two per cent; The small business rates relief is extended for a further year, so that over half a million of the smallest businesses pay reduced rates and over a third of a million pay no rates at all; and Targeted help for the high street will be provided in the form of a £1,000 discount for retail properties, benefitting around 300,000 shops, pubs and restaurants Fuel duty is frozen so that it will be 20p per litre less than under inherited plans. On Sunday: The employment allowance comes into effect, representing an up to £2,000 cut in employer National Insurance Contributions. This will benefit over one and a quarter million employers, over 90% of them small businesses. 400,000 small businesses will no longer pay employer National Insurance at all. Discussing the business tax reforms Chancellor of the Exchequer, George Osborne, said: "The Government is backing business, which is vital for the UK economy to grow and create jobs. The tax changes taking effect today will reduce the cost of employment, ease the tax burden on businesses and stimulate investment. "Since 2010, we have cut all major business taxes and the reforms we are delivering are already having a positive impact on the UK's competitiveness."