Thanks Gordon, but we want more

THE SMALL business community welcomed the Chancellor's tax cuts and training initiatives but said there was not enough help for thousands of small firms who cannot afford staff training.

The reduction in capital gains tax to 10% after two years will encourage family businesses to be passed onto the next generation, the Federation of Small Businesses said.

Small and medium-sized enterprises will also benefit from simplification of VAT, saving a typical small firm £1,000 a year.

Piers Merchant of London Chamber of Commerce said high-tech manufacturers in particular would benefit from research and development tax credits. However, business group London First said: 'We would have liked to have seen similar aid for London businesses affected by foot-and-mouth and not just rural areas.'

TUC general secretary John Monks said targeted measures should have been announced for manufacturing.