BOLTON and Bury Chamber has reacted positively to many of the measures announced in Tuesday's (Nov 27) Chancellor's Pre-Budget Report.

In particular, the business support organisation has welcomed the lowering of the Capital Gains Tax, payroll support and tax credits for training.

But the Chamber has urged that Government remain fully on course to meet planned investment in education and transport.

Reacting to the report, Andrew Ratcliff, chief executive of Bolton Chamber said: "With some local firms, particularly in the manufacturing sector, finding the going very tough, the Chancellor has provided some much needed respite, and this will help boost business confidence.

"However, in the medium and longer term, what business needs most is the promised investment in education and skills and in transport."

He added: "We welcome simplification in the area of VAT and payroll, but more needs to be done to radically reduce the red tape that is strangling local business. "Business will welcome that the Chancellor has left the door open on the training tax credit. This could make a real difference for small businesses.

"But the Chancellor's decision to consult on a statutory right to time-off for training will strike fear in the hearts of smaller employers because of the potential cost and disruption it could cause."

Mr Ratcliff continued: "Local businesses will also welcome the package of measures on R&D and science announced. This will help promote innovation, which is the fast-track route to higher productivity locally and nationally.

"The extension of the R&D tax credit to large businesses makes sense and it is about time the UK fell into line with other countries' practices on the taxation of intellectual property."

The chief executive went on: "It is imperative, however, that R&D and science are not seen as the preserves of large businesses and that there is more encouragement and help for small businesses to link up with our universities."

In their pre-Budget submission A Blueprint for Prosperity, the Chambers of Commerce called for measures to sustain survival and build recovery in the UK's small firms sector, announcing a package of recommendations targeting aid to struggling manufacturers, supporting business compliance with Government regulation and offering technology investment and training incentives to small firms.