Initiatives announced in the Budget have met with a cautious welcome from the retail sector.

Industry is hoping that key measures, like the cut in fuel duty, will go some way towards boosting ailing consumer confidence. Official figures just out have shown a slowdown in the retail sector, underlining the need for urgent action.

Director General of the British Retail Consortium, Stephen Robertson said: "Customers are seriously concerned about jobs and mounting pressures on their own finances. Food spending is holding up. It's sales of things like clothing and household goods that are struggling most.
"On their own the changes to fuel costs announced in the Budget won't make a huge difference to people's pockets but should give a boost to struggling consumer confidence. Helping customers feel happier about the future and emphasising growth plans as well as the cuts agenda, is crucial to boosting the retail sector which is in turn vital to the recovery."

Budget highlights for business include:

*Fuel duty cut by 1p per litre as of 6pm yesterday (March 23rd). The April 2011 inflation-only increase in fuel duty will be deferred to 1st January 2012; the April 2012 increase will be implemented in summer 2012.

*A reduction in the main rate of corporation tax by a further 1%. From April 2011, the rate will be reduced to 26% with further yearly reductions of 1% until 2014 when it will reach 23%.

*An increase in the rate of research and development tax credits for small and medium enterprises (SMEs) from 175% to 225% by April 2012.

*Funding for additional work experience and apprenticeship placements.

Business Link has published a summary of the key points specifically for business people on its website www.businesslink.gov.uk/budget

For full coverage visit the Treasury website at www.hm-treasury.gov.uk

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