It had been due to finish on 1 October 2012.

In his autumn statement to the House of Commons, George Osborne said the government will also give businesses the opportunity to defer 60% of the increase in their 2012-13 business rate bills as a result of the RPI uprating, to be repaid equally across the following two years.

Elsewhere in his his statement, Osborne said the government will expand credit lending facilities for small businesses, which he expects will cut their borrowing costs by 1%.

The National Loan Guarantee Scheme will be aimed at businesses with a turnover of less than £50m.