SMALL businesses in Warrington are optimistic, following a string of measures in the Budget which will help them.

Through the Government's business package, small companies are the main beneficiaries, with at least six Budget measures in their favour.

Dr Keith Standish, chairman of the 450-strong Warrington branch of the Federation of Small Businesses, said "Generally, people are saying the Budget is favourable. The feeling is one of optimism. "

He said there was some hesitancy when the new Government came in, but the situation had improved as the weeks had gone by. Dr Standish said there was slight concern over pensions, and over the strong pound, which was making it hard for exporters. "We would have liked the Government to reduce the amount of money in the economy," he said.

Other than that, the Federation welcomes:

Re-introduction of 50 per cent first year capital allowance, part of the package which doubles five year capital allowances.

Reduction of the small companies Corporation Tax from 23 to 21 per cent.

Subsidies of £75 a week to employers taking on the unemployed through Welfare to Work.

Reduction of VAT on fuel from eight per cent to five per cent from September, which will give consumers more purchasing power.

Allowing capital receipts from council house sales to be used to build new houses; also £1.3b for rebuilding and modernising schools, which will benefit the construction sector, including small businesses.

An investigation into tax loopholes, currently exploited by large companies.

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