BREWERS, businessmen and the low paid in East Lancashire welcomed the Budget - but homeowners and hauliers will be hard hit.

With East Lancashire having one of the worst rates of low pay in the country, the Chancellor's measures to cut income tax rates will be a boost to tens of thousands in the area.

But the abolition of tax relief on the first £30,000 of mortgages will hit the area harder than most as a high proportion of houses in East Lancashire are worth less than £30,000. Owners will now have to pay interest at full whack, and the effect will be greater on their already low wage packets.

Businesses in East Lancashire - many battling against the strength of the pound which his hitting export markets - broadly welcomed the budget.

Michael Damms, chief executive of the East Lancashire Chamber of Commerce which represents more than 1,000 businesses, said the Budget would help small firms in particular, provided the Government could meet its growth targets for the economy.

"The measures to encourage small businesses with a lower tax rate for start-ups and tax credits for research and development will be welcomed locally," he said. And he said measures to help the low paid would help more people in East Lancashire than in other parts of the country where wage levels are higher.

Although brewers Moorhouses of Burnley today welcomed the decision to freeze beer duty it warned it would have little impact.

"It was a welcome relief but it isn't going to do much to reduce the amount of smuggling that is going on," said Malcolm MacDonald, managing director.

And drinkers' pressure group CAMRA said although the freeze was preferable to an increase it was not good news for local tipplers and landlords.

"Pubs are closing directly as a result of high beer tax and without substantial duty cuts the situation can only get worse," said spokesman Mike Benner.

The Chancellor's measures to increase fuel costs will have a major impact on haulage firms in the area.

Ultra-low sulphur diesel, used by many firms, will cost an extra 5p a litre but excise duty has been frozen and will be £1,000 less for lorries with low emissions.

Self-employed haulier Keith Wade, of Wade's Transport, Manchester Road, Burnley, said the increased diesel tax would cost him an extra £2,500 a year for his one vehicle.

He said: "I doubt very much if I will be able to pass the cost on to my customers because the market is so competitive.

"It's helping me by freezing vehicle excise duty but it's still very high."

Another haulier, Peter McGregor, of McGregor Europe plc, Bond Street, Colne, said his business would not be seriously affected by the increase in diesel costs and he hoped to upgrade his fleet to the new "clean" vehicles.

He said: "My business could handle the increase in costs if the Budget generates confidence in the economy, and I think this Budget will do that overall.

"Our vehicles are changed every 18 months so we would start to benefit from the lower road tax fairly soon. I'm all for vehicles being run cleanly."

Pensioners have broadly welcomed measures in the Budget including increases in winter fuel allowance.

"My first reaction was that overall it's nothing much to grumble about," said John Nowell MBE, of the Old Age Pensioners' Association in Worsthorne.

"The extra money for heating in winter will be very well received by our members."

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