THERE was a muted response today from East Lancashire business leaders to Gordon Brown's budget proposals to boost the local economy.

Mike Damms, chief executive of the East Lancashire Chamber of Commerce described the Chancellor's announcement as "neutral in the extreme".

While welcoming a raft of proposals to support the growth of small companies, he warned that businesses would need to examine the small print of the budget.

"As usual, the devil is going to be in the detail," he said. "The real damage to employers was done in last year's budget when Gordon Brown increased National Insurance contributions which have only just come into effect this month. We were not expecting any headline statements for business and industry and he hasn't disappointed."

East Lancashire business advisers gave a cautious welcome to the proposals in the budget aimed at helping manufacturers.

Norman Snodgrass at Accrington-based Mayes Business Partnership said additional support and the promised removal of red tape would be good news for small businesses.

Mark Schofield, managing partner of Haworths Chartered Accountants, said the area's strong manufacturing base should benefit from the budget recommendations.

"The promotion of research and development tax credits will have a significant effect in this region when one thinks of aerospace and the many specialist textile and engineering companies.

Mr Damms was pleased to see measures designed to encourage the growth of small and medium-sized businesses, such as the proposed new investment companies willing to invest between £250,000 and £1 million.

But he remains concerned at the long-term prospects for the economy. "His economic forecasts for this year were wrong and he has placed great store on a recovery next year." he added. "That is where he is taking a major risk."

The budget was described as "all talk and no action" by the Forum of Private Business (FPB) which has a strong membership in East Lancashire.

Nick Goulding, FPB chief executive said "This was essentially a defensive budget which offered some consolidation for businesses, recognised some concerns, and encouraged new technology and skills development. But it will not make any real difference to our members in the short run."

East Lancashire Labour MPs welcomed the budget for the young and the old while the area's lone Tory Nigel Evans branded it "bleak."

Pendle's Gordon Prentice said: "We all want to see steady, sustained growth and more jobs and we want to see the extra money going into our NHS and into education year on year. And that is exactly what's going to happen."

Ribble Valley MP Mr Evans said: "This was the seventh budget by Gordon Brown and the bleakest one so far.

Rossendale and Darwen MP Janet Anderson said: "I welcome the help for young families and the over-80s in particular."

Burnley MP Peter Pike said: "This is a Labour budget for pensioners and children giving welcome support to our oldest and most vulnerable citizens and help for the next generation"