Shropshire business leaders today gave a mixed reaction to the Budget, saying more could have been done to help small firms struggling with cashflow issues.

The county’s Chamber of Commerce had called for Alistair Darling to deliver a Budget which would “help nurture industry while creating the conditions required to make growth a reality”.

On the wishlist was a cut in the regulatory burden on business, scrapping the planned increase in National Insurance contributions and a freezing of the national minimum wage.

Richard Sheehan, Chamber director, said it contained “good and bad elements” for businesses but said Mr Darling could have done more for businesses.

“Businesses need to keep costs under control and any increase in the national minimum wage and National Insurance contributions does not help. We see a number of measures which will support certain sectors, but we would have like to have seen more help for struggling small and medium-sized businesses.”

The Chamber had also called for a move to help SMEs, which make up 90 per cent of Shropshire’s economic landscape, with guarantees on trade credit insurance.

Mr Darling responded with additional targeted support for companies’ cashflow, with a top-up trade credit insurance scheme. This will match private sector trade credit insurance provision if insurers reduce their cover to business in the UK.

Mr Sheehan added: “We welcome the scheme which will ensure help for smaller businesses and we also welcome the announcement on getting young people into work and training, which is good news and something we have been focusing on in Shropshire for some time.”

Responding to the announcement that loss-making firms can reclaim tax on profits from past three years, the Chamber said it was pleased “the previous efforts of businesses are being recognised” and also welcomed moves to stimulate construction.

Tim Sutcliffe, managing director of pi financial in Shrewsbury, said the Budget was “one of optimism” and many people would question Mr Darling’s views on how quickly the economy will actually recover.

“Designed to be a budget to get people back to work and support businesses and homeowners, the devil will be in the detail on how all this will be achieved.

“Much of the announcement sounds quite dramatic but the increased tax rates for higher rate taxpayers are likely to raise very little, and the extended stamp duty, while good news, is unlikely to get the housing market moving.”

By Business Editor Amy Bould