CHANCELLOR Gordon Brown's eighth budget has been described as "absolutely neutral", by Salisbury & District Chamber of Commerce and Industry president Andrew Hodder.

Mr Hodder, a senior partner at Salisbury solicitors Whitehead Vizard and a member of the Institute of Directors, said that while Mr Brown claimed Britain was experiencing the best economic growth for 200 years, it "did not feel like it".

He said: "We have plunging pensions and endowment policies and while stamp duty land tax has been frozen, the increases in local property prices mean it is an increased tax burden.

"The reduction in administrative staff in government offices is to be welcomed there is unnecessary administration.

"Working in, say, the health service or teaching is like watching a premiership football match very few people playing and lots of people watching."

He added: "I think we will find there will be a lot more detailed tax legislation in the papers issued by the chancellor and the Inland Revenue and the devil will be in the detail.

"This budget was absolutely neutral.

"The chancellor may have frozen duty on fuel for six months, but it will increase with rising oil prices.

"One good thing is the tax relief for smaller breweries, which will help our breweries at Downton and Netheravon."

Accountants Smith & Williamson, whose offices are in Chipper Lane, said that while the government was keen to stress this was a budget for stability, taxpayers were "gearing up for a rollercoaster ride", due to a raft of proposals announced last December.

"The government has moved to reduce the tax advantages of incorporation for smaller owner-managed businesses," said Joss Dalrymple, tax director.

"Rather than opting for a tax on dividends or some form of deemed market salary to capture those who pay themselves a small salary and extract funds primarily by means of dividends, the government is introducing a corporation tax charge of 19 per cent on distributed profits.

"However, there will be no attack on profits retained within the business.

"Small businesses will also be required to provide more basic tax information from the outset to the (Inland) Revenue."

The Forum of Private Business cautiously welcomed the stability on tax and spend, but attacked the "overall failure to address the rising burden of red tape".

Nick Goulding, FPB chief executive, said: "We welcome the fact that the rises forecast in most taxes have been avoided, but businesses will not forget that the increases of recent years are all now in effect.

"The rising tide of red tape is the major reason that small firms are underperforming in the economy."

A budget booklet is available free from Smith & Williamson on 01722 411881.