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Nick Gooch, partner of Salisbury accountants, Francis Clark.

ALISTAIR Darling's first Budget "fizzled rather than roared", producing only limited good news for businesses, says Nick Gooch, partner of Salisbury accountants, Francis Clark.

The main rate of Corporation Tax will fall to 28 per cent, as announced in the Pre-Budget Report, but the increases in corporation tax for small businesses announced at the same time remain.

Changes to the Capital Gains Tax (CGT) regime were confirmed, introducing a single rate of 18 per cent and Entrepreneurs' Relief to replace Taper Relief on business assets.

The criteria for the Small Firms' Loan Guarantee Scheme are to be extended to all small firms in April, to make it easier for small businesses to borrow for growth.

The limit for relief in the Enterprise Investment Scheme was raised to £500,000, and the Chancellor pledged to make it easier for small businesses to win government contracts.

But, said Mr Gooch: "With little room to manoeuvre, there were no rabbits from the hat, but one overwhelming message - you've had it good, you could still have it good, but now it's time to pay.' "According to Mr Darling, the economy is holding its own compared with other economies around the world.

"But growth is slower than forecast in the Pre-Budget Report. Growth for 2008 is forecast at 1.75-2.25 per cent, and, for 2009, the forecast is 2.25-2.75 per cent."

The campaign by the Federation Of Small Businesses to halt further increases in fuel duty bore fruit, as Mr Darling decided to postpone the two pence increase until October.

But, said FSB chairman, John Wright, "the Treasury's dithering ever since the Pre-Budget Report - and a series of damaging tax rises in the last year - have totally undermined the government's position with small businesses.

"We welcome the freeze on fuel duty until October, but the issue is unlikely to go away," he added.

"The cost of fuel is damaging small businesses and their customers in every industry and every area of the country." He said the FSB supports plans to reform regulation, expand the Small Firms' Loan Guarantee Scheme and help female entrepreneurs.

And moves to give at least 30 per cent of public sector procurement to small and medium-sized businesses are also afoot.

Richard Mannion, tax director of financial services group Smith & Williamson, which has an office in Salisbury, called the Budget speech "boring with lots of micro-management".

"Nothing was really said about the disastrous development of new legislation for capital gains tax, residence and domicile or income shifting over recent months," he said.

10:56am Thursday 20th March 2008

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