Reacting to the Chancellor’s Budget speech, Richard Lambert, CBI Director-General, said:
“The Chancellor has achieved his twin objectives of setting out a credible plan for the public finances and producing a convincing growth strategy for the longer-term.
“Mr Osborne is close to achieving his 80:20 ratio of spending cuts to tax increases, which is so important to sustaining long-term growth. He has struck a sensible balance on Capital Gains Tax, limiting the impact of the increase on entrepreneurial activity and business investment.
“The 5-year road map for Corporation Tax provides much-needed consistency and certainty. Taken together with consultation on foreign profits and intellectual property, these will help prevent and could even reverse the flow of companies overseas.
“There was clear recognition in the Budget of the role that business needs to play in getting the economy back into shape, and generating the jobs and wealth needed to sustain economic recovery.
“The Chancellor has sensibly taken measures to secure public support by offering extra help to cushion the impact on low-income families.
“This Budget is the UK’s first important step on the long journey back to economic health. The autumn spending review, and the re-engineering of public services, will be equally challenging.”