TODAY the Chancellor of the Exchequer set out his ‘bold’ Budget, creating a higher wage, lower tax and lower welfare Britain.

In a packed House of Commons, George Osborne, in the first all Tory Budget since 1996, spoke of The Living Wage, which next April starts at £7.20, rising to £9 an hour by 2020. It will replace the minimum wage which is currently £6.50.

He also spoke of cutting housing benefits for those under 21, freezing working age benefits and scrapping student grants.

Making reference to the Greek crisis he said: “Britain is borrowing too much and spending too much.”

He went on to say: ''This is the new settlement from a one nation government.

“This is a big budget for a country with big ambitions.''

Responding to the Budget, Maureen Frost, deputy chief executive of Hampshire Chamber of Commerce, said: “The overall focus was naturally to try and balance the books.

“We welcome the Chancellor’s clarity on a number of measures that will help maintain and strengthen business activity in Hampshire.

“These include the cuts in corporation tax, commitment to childcare, the new permanent Annual Investment Allowance and, for some small businesses, lower national insurance contributions.

“We also agree with the aim of creating more apprenticeships to address skills gaps in different industries though it remains to be seen what the impact of an apprenticeship levy on large businesses will mean in practice. We remain committed to encouraging all businesses to play their part in developing young people.

“Ring-fencing taxes on cars to fund road improvements is a sensible move, reflecting the acute need to invest in regional and national infrastructure.

“Other measures are less welcome, such as the 3.5 per cent hike in insurance premium tax which applies to all businesses, goes straight to the bottom line and could lead to some businesses reducing cover to offset this.

“We are also disappointed by the lack of announcements on support for exporters and the reform of business rates, both important issues for Hampshire businesses.”

The Federation of Small Businesses described the Budget as a mixed bag for businesses.

John Allan, FSB national chairman, said: “There was further support to reduce corporation tax, fix the annual investment allowance and boost regional growth, where investment in roads will be particularly well received.

“We agree with the focus on productivity but need to see the details to raise skills through the apprenticeship levy on large firms.

“Planning reforms are also critical to raising productivity and again we look forward to seeing the proposals on Friday.

“However, even though offset by a welcome increase in the employment allowance, some will find the new National Living Wage challenging.

“Changes to the treatment of dividends will also affect many of our members.”

Jim Davison, South of England Region Director at EEF, the manufacturers’ organisation, based in Hook, said the Chancellor served some aces, but there were double faults on the training levy.

“The Chancellor has served up a number of aces in supporting business investment allowances, plans to cut employer national insurance contributions, phased reductions in corporation tax and funding for road improvements,” said Mr Davison.

“His commitment to defence funding is welcome and will encourage investment in key technologies. I also support the principle of establishing a new National Living Wage.

“However he has double faulted on the training levy which manufacturers will be sceptical about.

“Until we see the detail it is not clear how this will help deliver the high quality apprenticeships we urgently need.

“Employers must be in the driving seat on this reform to ensure we get the right quality of apprenticeships and training.

“There will be no tolerance for recreating the failed skills bureaucracy of the past.

“The budget clearly recognises the need to prioritise measures which lay long-term foundations for sustainable growth and improved productivity. Industry will welcome the fact this has remained the focus of attention despite the tough choices which are necessary to balance the books.”