Entrepreneurs could be spared an expected hike in corporation tax in next week's Budget with a lower rate introduced for small businesses, The Telegraph has learned. Rishi Sunak, the Chancellor, is weighing up bringing back the small profits rate, axed by George Osborne in 2015, to support small to medium-sized companies. This lower rate taxed smaller companies with turnover of up to £300,000 at 20 per cent of profits. One source said: "They are going to bring back the lower corporation tax rate that got faded out under George Osborne." Smaller companies are also expected to be given back a suite of tax allowances for plant and machines which will help manufacturers in the Midlands and the North. As part of the changes, Mr Sunak is expected to increase corporation tax for larger firms to as much as 25 per cent by the end of this Parliament in 2024 at the latest. The small profits rate was axed by Mr Osborne when he slashed the main corporation tax rate in the first few years of the last decade. Mr Sunak could also give National Insurance holidays to companies that hire new staff in a bid to encourage firms to take on employees as the pandemic eases, sources say. Any change would be expected to come in after winding up of the Government's furlough scheme, which has seen taxpayers fund the jobs of people who cannot work during the pandemic. The furlough scheme is currently due to finish at the end of April.