Alistair Darling's "plastic bag" Budget may have been good news for "greenies"

- but there were grumbles from Sussex businesses.

In the run-up to the Chancellor's maiden Budget, firms across the region were counting on him to ease the burden of red tape for small enterprises - but were left disappointed.

Among the headlines for businesses was the news corporation tax will fall from 30 per cent to 28 per cent by April, with simpler taxes for small companies.

Capital gains tax will remain at ten per cent, while funds available through the small firms loans guarantee will increase by 60 per cent in the next year.

Mr Darling also promised to introduce a capital fund of £12.5 million to encourage more women entrepreneurs.

None of these measures were enough for Mark Froud, chief executive of Sussex Enterprise, the county's chamber of commerce.

He said: "There were no real surprises, just lots of waffle. It appears that businesses only got the crumbs from what is generally a dull Budget.

"The Chancellor missed an opportunity to reverse the decision to increase corporation tax on small businesses that was made last year."

Mr Froud said the green parts of the Budget, such as clamping down on plastic bags and increasing tax on gas-guzzling cars, did not stretch to businesses.

He said: "Mr Darling may have talked about tackling plastic bag usage but there were no significant moves to helps businesses recycle and tackle environmental issues.

"We called for a reduction in red tape and simplification of the tax system but there is little evidence these issues have been addressed."

Russell Bell, a senior partner at ASB Law, which has branches in Crawley and Brighton, described much of the relief on offer to small and medium enterprises as "meagre" and the amounts involved as "peanuts". He said: "There's nothing in there that will give back to businesses what he will take in corporation tax and things such as fuel duty."

Mr Bell was also scathing about the decision to press ahead with plans for a £30,000 levy on wealthy "non-domiciled"

foreigners living in Britain. The plans have drawn fire from business leaders fearful the South East's status as a financial centre could be hit.

The £30,000 levy to claim favourable tax treatment will apply to those who have been resident in Britain for seven of the past ten years, while the Government is also to tighten up residency rules so fewer people are able to claim it.

The Chancellor said the rules would not be substantially revised for the remainder of this Parliament and the next.

But Mr Bell said: "Instead of attracting people, he's saying to them, We'll make it more expensive to live here'."

  • For more case studies, see today's The Argus, pages 19-19