New Secretary of State for Scotland Alistair Carmichael welcomed the move, saying:
Small businesses are the engine room of our communities and the economy in Scotland. For them, a £2,000 per year tax cut will be a welcome boost, I hope. It will in fact cut the need for some 35,000 Scottish businesses to pay national insurance contributions at all.
I hope this will send a signal to the business community that we are on their side and want to see them play the fullest part in re-building our economy.