Finance experts in Shropshire said the budget announcements provided opportunities that Shropshire’s small business community ‘should not overlook’.

Chancellor George Osborne announced increased tax relief for research and development and David Walker, director of tax at Turner Peachey in Shrewsbury, said it provided a good opportunity for businesses in the county.

He said: “Business investment should benefit from the greatly enhanced Enterprise Investment Scheme and the increased Entrepreneurs’ Relief limit. It remains to be seen whether the process of claiming these reliefs will become any simpler.

“Research and development tax relief is both generous and under-claimed, by companies that don’t recognise they might qualify. The increase in relief for R&D spending to 200 per cent and 225 per cent next year is an opportunity that smaller companies should not overlook.”

Mr Osborne forecast higher than expected growth over the next three years despite lower than expected growth last year, blaming the low level of growth in 2010 on a weaker final quarter combined with a rising commodity prices and high inflation.

The budget saw the abolition of 43 tax reliefs as recommended by the Office of Tax Simplification, who have also prompted a merging of the PAYE tax and national insurance systems.

Richard Hilton, of Telford’s Fabweld Steel Products, welcomed the scrapping of £35m of regulations, saying: “The Government risked the current manufacturing boom fizzling out if it continued to insist on unnecessary regulations.”

Youth unemployment was tackled with 40,000 extra apprenticeships funded.

But Ian Davies, from Tranter Lowe accountants, said help was still needed for SMEs. He said: “The improved tax reliefs announced for the Enterprise Investment Scheme and doubling of Entrepreneur Relief will help but the Banks still need to increase their lending to SMEs.”

Shropshire Chamber of Commerce managing director Richard Sheehan said: “The Budget will be judged by whether it matches rhetoric with radical action that gives businesses the confidence to invest, and enable the private sector to prosper.”

The chancellor confirmed he is adding £1,000 on to the personal allowance which will put £200 into the pockets of basic rate taxpayers.

By Business Editor Thom Kennedy