2009 Budget: The business reaction

Business leaders have given mixed reactions to the announcements made by Chancellor Alistair Darling in his 2009 Budget.

The Federation of Small Businesses (FSB) said that the Chancellor had largely ignored the small businesses that are 'at the heart of job creation and economic recovery'.

The organisation gave a cautious welcome to the focus on jobs, but expressed disappointment that the Budget did not offer support for those small firms which are trying to hold on to valued employees during difficult times.

The FSB also welcomed the announcement of a trade credit insurance scheme, together with the doubling of the main capital allowances rate to 40%, but called for further action to tackle late payments to small firms, and expressed disappointment that the Government did not introduce automatic rate relief, and that fuel duty will rise by 2% from September.

Miles Templeman of the Institute of Directors (IoD) warned that Britain needs to face up some 'very difficult choices' in relation to spending and taxation.

'Whilst today's Budget does reduce the rate of growth of public spending the scale of the fiscal deterioration in the UK means that extraordinary measures are required', he said.

David Frost, Director General of the British Chambers of Commerce (BCC) broadly welcomed the announcements, commenting that 'the Government appears to have understood that it will be business driving the economy out of recession, and there are some good measures that reflect this'.

However, both the BCC and the Confederation of British Industry warned that the Chancellor's growth forecasts look overly optimistic.