The tax relief for research and development has been welcomed by business leaders in Oxfordshire as a boost to the county's hi-tech firms.

Bill McCardle, director of the Oxfordshire Chamber of Commerce and Industry, said: "From our point of view in Oxfordshire the tax credits for research and development and training are encouraging."

The Chamber, which has long campaigned for a reduction in the burden of business taxation, a new drive to cut red tape, and measures to tackle traffic congestion, welcomed proposals to simplify VAT for small firms.

Mr McCardle said that the Chamber welcomed the announcement on training, having urged the Chancellor before the Budget to promote job creation and growth, but added that he would await the promised publication of more details.

He said: "We hope that his focus on low inflation, investment, productivity and growth will mean the Bank of England will announce a further cut in interest rates. "Overall, the Budget was all about stability, with nothing particularly exciting, though we welcome the reduction in the VAT threshold for smaller businesses.

"These individual measures will be welcomed by many businesses. We are also relieved that the Chancellor has resisted the temptation to launch a major pre-Election giveaway."

Mr McArdle, left, added: "There were a couple of areas that we would have liked to have seen included.

"We were disappointed that the Government has rejected the Chamber's plea not to introduce further paid parental leave.

"There is also disappointment at the lack of new support for investment in public transport.

"Traffic congestion is one of the key issues raised by our members in the county.

"We expected to see some action from the Chancellor on this vital issue for business."