A leading Oxford University economist expressed his disappointment with yesterday’s Budget for not doing enough to pull the UK out of recession.

Christopher Allsopp CBE, a senior fellow at the Oxford University school of economics and a director of the Oxford Institute for Energy Studies, told inthenews.co.uk the chancellor could have gone further and pointed out the problems with some of his headline announcements.

He said: “I think a good deal more could have been done in terms of stimulus – I am not nearly as frightened by the deficit figures as some people. But I sympathise with the chancellor because it is almost impossible politically.

“If the private sector is going to get out of debt, then as a matter of accounting the public sector is going to have to find the counterpart.

“There was nothing surprising at all – it was a broadly neutral Budget reflecting the little room for manoeuvre. There was some specific help for specific sectors but small change overall.”

Mr Allsopp predicts the chancellor’s announcement of new 50 per cent income tax for the highest earners will have little real impact.

He said: “It will receive huge public attention but the numbers affected are not all that high and I am not sure it will raise that much money. There will still be those who know how to avoid paying.”

And he was equally uncertain about the effect of the high-profile car scrappage scheme.

“I have my doubts about whether it will work. The manufacturers will not like the fact they have to pay half the cost at all. And I remain to be convinced that it will have a big effect in terms of carbon emissions.”