Business groups said that the Government had to do more to regain its business-friendly credentials, and raised fears over the credibility of its economic forecasts. However, they also expressed relief that there were no “nasty surprises”.

Unions accused the Chancellor of failing to deliver for the poorest in society while shying away from tougher taxation on wealthy non-domicile individuals.

Richard Lambert, Director-General of the CBI, said: “The Chancellor didn’t set the Thames alight, but then he didn’t have anything to set it alight with. On the surface there are no nasty surprises, but his growth assumptions are optimistic and leave him with little room for manoeuvre should things take a turn for the worse.”

Mr Lambert welcomed moves to stimulate enterprise in a ten-year action plan. “The Government has much to do if it is to win back its enterprise credentials, but the measures announced are a credible first step on the road,” he said.

Rose-tinted specs fail to offer hope

The obvious justification for Mr Darling’s relatively upbeat scenario is that the outlook is fraught with uncertainty

Background

• Darling's first Budget: the main points

• The Chancellor's speech in full

• Darlings first Budget: the reaction

• Chancellor hits the home budget as his debts soar

• Need to know: Budget 2008

The Chancellor delivers a modest Budget

As so often is the case, virtue, in terms of improving public finances, is not now, but at least a year away

Multimedia

• Video sketch: Matthew Parris and Ann Treneman

• Eco-worrier: should we be pleased?

• Green Central: round-up of the green Budget measures

Multimedia

• Red Box: a list of Darling's new enemies

• The winners and losers

• Video: the 'fingers crossed' budget

David Frost, Director-General of the British Chambers of Commerce, said that the Budget would be regarded as one that failed to help business to overcome difficult conditions. “The business community will still feel that the Government has used them as an easy target for the Treasury,” he said.

Martin Temple, chairman of the EEF manufacturers’ organisation, said: “The innovative package of measures designed to promote enterprise will tick many of the boxes for manufacturers and will go some way towards restoring the Government’s reputation in this area. We will, however, want to see clear evidence of delivery.”

The Trades Union Congress backed Alistair Darling’s claims about the strength of the economy, but it attacked the Chancellor for failing to crack down on non-domicile taxation. Brendan Barber, the General Secretary, said: “While there was limited scope for major changes, the Chancellor should have done more to tackle child poverty. But to do so will require much more bravery in making the super-rich pay their fair share of tax.”

Tony Woodley, joint general secretary of the union Unite, said that Mr Darling had made moves towards tackling fuel poverty but had missed an opportunity to levy a windfall tax on excess profits at energy companies.

Hauliers welcomed a delay to the 2p increase in fuel duty until October.Geoff Dossetter, of the Freight Transport Association, said: “As the price of oil continues to rise, \ must continue to keep his foot off the fuel-duty accelerator.”

Explore Economics

• Autumn Budget 2007

• Budget 2008

• World Economic Forum

• The Times MPC

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