Budget 2003 (6): Reactions - mixed responses

All sectors of industry and the political spectrum lined up with mixed reactions to the Chancellor's Budget announcements, though their responses tended to range from a luke-warm welcome to a moderately-cool complaint.

Temperatures did not run particularly high on first reaction which could be in part due to the amount of advance trailing which now takes place leaving little surprises for the day, as well as a general feeling that domestic matters were of a secondary nature to the international scene today of all days.

However, although the Chancellor has closed his Red Box - those affected by previous Budget announcements recognise that there is often more lying beneath the surface in the small print of the press notices which follow, than the hour-long performance from the Dispatch Box.

But the politicians and business organisations were, nevertheless, out in force to offer the well-honed, carefully crafted, sound-bite responses.

CBI

The main industry body, the CBI, was even-handed in its response, welcoming some points but retaining enough concerns to be able to ensure the Chancellor merely received a 'good attempt but could do better' from industry leading representative group.

However, many freelancers will not be agreeing with the CBI's Director General, Digby Jones, who put the Chancellor's measures for small firms in the 'welcome news' category.

Digby Jones welcomed these specific initiatives:

On measures for small firms, he said: "This is a further step on the road to a real enterprise culture. We are particularly pleased by extended eligibility for enhanced capital allowances and the reformed small firms loan guarantee scheme."

On moves to cut Red Tape, he said: "This is a positive move in the right direction and the CBI looks forward to being involved in discussions on construction, transport and environmental services. But as always business will be looking for results, not just talk."

On the R&D tax credit, he said: "Firms will applaud this continuing drive to invest in innovation, which recognises the need to build for the future, despite short-term economic uncertainties."

On enterprise areas, he said: "The combination of fast-track planning approval and the prospect of enhanced capital allowances could have a big impact on future development in deprived areas."

However, he expressed CBI concerns relating to stamp duty on commercial property and training pilots.

Digby Jones said: "The training pilots have not shown that a right to paid time off is always the answer. Such schemes are best tailored to the needs of individual firms. The worry is that the Chancellor has already decided to introduce a statutory right regardless of what employers need, and one size will certainly not fit all in this important area."