BUDGET COMMENT

George Osborne at the outset of his speech, made it clear that this was a “rearrangement” of tax policies, with no additional overall change in “take”.

As the Chancellor progressed, this became apparent. However, for Midland industry, there was much encouragement.

For a start, the fact that both Birmingham and Solihull are on the list of new enterprise zones is very welcome, with all the benefits that such a proposal will realise.

Then, the corporation tax changes will benefit thousands of companies, and will lead to much greater emphasis on investment in new plant and equipment by many manufacturing companies.

I was very interested in his proposals concerning apprentices, and the number of places that he suggested will become available at universities and technical colleges. This again, if work can be generated, will be very beneficial to manufacturing. However, it will be three to five years before the effects become apparent to industry.

His reforms regarding planning will be most welcome, for industry has to move fast to take advantage of any given opportunity, and cannot wait whilst bureaucrats slowly process through presented plans.

The change from 40p to 45p per mile for those using their own cars for work, is long overdue and, although it will present an additional charge to employers, is just. It had not been altered since 2002. Similarly the reduction of 1p per litre with immediate effect, and the postponement of the April increase, was also very welcome.

I was intrigued by the proposed changes in inheritance tax. Many estates will already contain bequests for charities, and I can imagine that the legal and accountancy professions will acquire more work as people will probably have to do an annual revue of their wills to ensure that at least 10 per cent is given to charity, to secure the reduced charge of 30 per cent overall.

This Budget should commend itself to West Midlands industry. It has been designed to get the British economy going, with manufacturing at the forefront, supported by a wide variety of measures. Hopefully, this will lead to unemployment figures going down, especially if exports can be increased. With the problems in Japan, and the instability of North Africa and the Middle East, exporters have a window of opportunity for industry to grasp.

Considering this country’s debt problem, not a bad Budget at all!