THE BUDGET showered mixed blessings on East Lancashire people, with pensioners and estate agents cheering Chancellor Gordon Brown's package while motorists and licensees gave the new measures a thumbs-down.

Kevin Durkin, advice and information officer for Age Concern, Blackburn, applauded VAT cuts on fuel, the extension of the Energy Efficiency Programme which means more grants for pensioners for draught proofing and insulation, and the extension of National Health Service funding.

Kevin said: "These measures are certainly a step in the right direction and very positive for older people in East Lancashire."

Home owners will pay £5 to £10 more on their monthly mortgage with the slashing of mortgage tax relief, but East Lancashire estate agents do not feel the move will affect a "buoyant" housing market.

Estate agent Roy Cook, of Sudell Cross, Blackburn, said: "These new measures will hardly touch the housing market in East Lancashire.

"There is only a slight reduction in the tax relief and that is not until next April."

The AA in the North West accused labour of ignoring the "transport chaos" in favour of profits with the increase of 20p a gallon on petrol costing the average driver an extra £60 a year.

"In a Budget that takes another £1 billion from drivers and talks of the importance of long term investment, the AA is dismayed that absolutely nothing has been said about investment to tackle the UK's transport chaos," said a spokesman.

Licensees were disappointed that alcohol prices were set to rise but believed this move would be preceded with a reduction on duty. John Broderick, Chairman of the North West Licensed Victuallers Association, said: "Customers are resisting prices already and this is just another nail in the coffin for pubs in East Lancashire.

"With the bootlegging situation we are hopeful that the Government will slash the duty on alcohol."

The Forum of Private Business welcomed the cut in smaller firm corporation tax and the doubling of capital allowances to encourage investment in plant and machinery

Nick Goulding, head of policy, said: "It will not revolutionise prospects for small businesses but provides a platform for sustained growth and investment."

Anti-smoking campaigners were jubilant at the price leap of 19p on a packet of cigarettes and hope it will encourage more smokers to stub out their habit.

Tony Goodall, deputy chairperson of ASH (Action on Smoking and Health), said: "Thousands of people will give up smoking because of the price increase and it will benefit their health and their pocket."

The Greater Manchester and Lancashire Regional Council on Alcohol were furious after Mr Brown did not increase taxation on alcopops.

The unit had hoped for an increase of 50p on alcopops to put them out of the price range of young people.

Liz Smith, chief executive of the GMLCA, said: "Alcopops are harmful to youngsters and should have been priced well beyond their pockets."

Michael Damms, chief executive for East Lancashire Chamber of Commerce, said: "The reduction in corporation tax is good.

"The windfall tax is softer than originally suspected.

"But the success of welfare to work plan hinges on whether jobs offered are real jobs, not just moves to take people off the unemployment register."

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