Business leaders in Birmingham and Solihull today welcomed measures announced by the Chancellor to help firms recover from the recession but warned that it was a Budget with one eye on the General Election.

Birmingham Chamber of Commerce and Industry (BCI) said easier access to finance, the staggering of fuel duty rises, measures to encourage innovation and enterprise were all positive measures.

Katie Teasdale, the BCI's head of policy, said: "We welcome the creation of the new Credit Adjudicator body, which will fast-track complaints from smaller businesses who claim they have been unfairly denied credit.

"But the decision to increase duty on cider by 10 per cent at the weekend will be a serious blow to the Midlands' important brewing industry at this difficult time. Pubs will be hit further as prices will inevitably have to increase, raising the prospect of further closures.

"The Chamber also questions whether the Chancellor's forecasts for growth are realistic. Businesses in the West Midlands do not feel that they have exited recession and fears of a double-dip remain. It is crucial the investment in business support continues. 

"The new UK Finance for Growth, a national investment corporation, should, if successful, become a one-stop shop for smaller businesses which need credit. Simplification of access to finance will be crucial to smaller businesses if they are going to emerge from the recession intact.

"Also welcome is the extension of the ability to negotiate delayed payments of tax receipts, which will help more businesses survive in tough economic times.

"Birmingham will want to make the most of the Chancellor's announcement that 15,000 Civil Service jobs are to be re-located out of London in the next five years.

"The phasing of the fuel duty increases will help businesses cope and plan for the rise.

"The measures to encourage business enterprise are also welcome but we await the detail of the promised overall £2.5 billion one-off growth package announced by Mr Darling.

"Industry will be encouraged by the £270 million one-off payment to universities to help them create more places in science, technology, engineering and maths degrees.

"We are disappointed that the Chancellor did not announce the scrapping of a one per cent increase in National Insurance contributions from April next year, representing what amounts to a staggering £14 billion increase in the business tax bill by 2014.

"This will place serious pressures on UK plc and job creation. A far better route would have been to increase the rate of VAT.

"The government's guarantee to provide job or work placement for 16-24-year-olds who have been out of work for six months will help to tackle the increasing problems of youth unemployment.

"Small businesses will be heartened by the promise to award an extra 15 per cent of central government contracts to SMEs and it's crucial that the procurement process will be made as accessible to employers as it can be.

"However, while all of these measures will be welcome by businesses, this is a Budget designed to win the election. For instance, the promised business rate cut for one year from October this year will hang in the balance depending on who forms the next government."