Chancellor Gordon Brown has used his 10th Budget to declare that the economy is performing strongly, with recent economic growth likely to continue.
As predicted, the budget held few surprises for business but did include a number of measures aimed at helping the UK continue to lead the way in fast-growing sectors such as drugs, financial services and creative industries.
Among the changes announced was an extra £100m pledged to double enterprise capital funds and help small firms, as well as plans to double the number of companies eligible for research and development tax credit.
The chancellor also said that the new deal scheme would continue with a greater focus on improving skills, and that the amount of training for women with no skills will double in an attempt to close the gender pay gap.
The minimum wage will also rise to £5.35, as expected.
Addressing rising energy costs, the chancellor pledged to freeze petrol duty, while the most energy inefficient cars will face a steeper tax.
On the economy, Brown assured there will be no return to the “boom and bust” of the past and said that his policies have helped foster a “ culture of stability.”
The UK economy is currently inline with Brown’s predictions in 2005, with inflation on target at 2%, and economic growth with an annual rate last quarter of 2%. He predicts that economic growth will be 2%-2.5% this year and 2.75%-3.25% for the next two years.
Exports are also expected to grow by 5%-5.5% this year and between 4.75% and 5.25% in 2007-08.
With the strength of the economy behind it, the chancellor said that Britain can "lock in stability and lead the world in new industries and technology."
Conservative leader David Cameron responded that Brown’s policies are outdated and complained that business investment is at a record low while taxation is at an all-time high.
Liberal Democrat leader Sir Menzies Campbell criticised Brown’s Treasury for failing to properly manage its tax credits system.
