BUSINESS leaders in Oxfordshire gave a broad welcome to Chancellor Gordon Brown's softly-softly "Budget for All," writes David Duffy.

Cuts in corporation tax, with extra help for small companies were praised, but caution met changes to National Insurance contributions which could prove costly to employers.

Increases in fuel duties were greeted with resignation, but bosses were visibly pleased as a feared serious attack on company car drivers again failed to materialise.

Howard Machin, chairman of the economic affairs committee of the Thames Valley Chamber of Commerce, said while welcoming some of the headline cuts in taxation they were worried about where the money would come from to pay for them.

He said: "However what the Chancellor is giving with one hand he may well be taking away with the other with increased employers' National Insurance contributions and we will have to wait to see the detail of the proposals."

Tony Foulsham, a partner at business advisers Grant Thornton, agreed that a close study of the detailed proposals, particularly on Capital Gains Tax, might yet produce some upsets.

But he said with the economy performing reasonably well the Chancellor didn't need to make major changes now. He said: "It is moving slowly in the direction regarded as desirable, politically and socially, without having too much financial effect."

Employment Minister and Oxford East MP Andrew Smith said the Budget would make work pay, encourage enterprise and give families the support they need.

He said: "This is a Budget to promote work. The tax cuts for all employees paying national insurance will make up to 43,212 people in Oxford East better off by over £65 a year."

He said cuts in corporation and small business tax would help companies to succeed.

He added: "This is also a Budget for fairness. Because of the new Working Families Tax Credit - cash paid through the tax system to low-paid families - families with a full-time worker will have a guaranteed minimum income of £180 a week and you won't pay any income tax at all if you earn under £220 a week."

Tony Morgan, managing director of Oxford photographers Gillman & Soame, welcomed the reduction in corporation tax and said moves to help lower-paid individuals and families were a step in the right direction.

Geoffrey Forster, senior manager of Lloyds Bank Commercial Services, Oxford, said he felt the Chancellor could have shown a bit more imagination.

He said: "It looks like he is playing around with an enormous number of areas. "I think the Government is doing a very good job at the moment, but I would like to see something original."

Brian Prime, policy unit chairman of the Federation of Small Businesses, said small firms would welcome many aspects of the Budget.

He said: "The Chancellor has delivered a Budget for employers, employees and consumers. Small businesses with long-term investments will benefit and more people will have money in their pocket."

Mike Fitchett, chief executive of scaffolding firm MG Services Group of Stanton Harcourt, said he was philosophical about Budget changes. He said the rises in fuel duties would increase costs while the drop in corporation tax would mean some savings.

He said: "They deal the cards and we have to play them."

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