Also responding to the Budget, James Braithwaite CBE, welcomes the announcement of increases in the value of research and development, as well as a boost to the funding available through Regional Development Agencies.

Under the new proposals, small and medium-sized companies will receive 175% tax relief on R&D expenditure (previously 150%) and large companies will get 130% (125%).

Brathwaite said: “The Chancellors Budget recognises that, for the UK to meet global challenges and secure its global competitiveness, performance will need to be driven by flexible, enterprising and highly-skilled businesses and workers. The R&D tax credit changes are an acknowledgement that we must invest in success to meet the Global Challenge, one of the headline targets of the Regional Economic Strategy.”