Yorkshire Forward chairman Terry Hodgkinson described the Chancellor's budget plans to devolve more powers to the regions to help stimulate higher economic growth as a "very welcome step in the right direction".

He said that Mr Brown had listened carefully to the views that the regional development agencies had contributed to the budget process and produced a comprehensive response.

Steady economic growth was bound to be welcomed by hundreds of businesses involved in tourism in York, said Gillian Cruddas, chief executive of York Tourism Bureau.

After Gordon Brown's speech, she said: "This appears to be a budget which promotes economic stability and that is good news for tourism."

She said that the growth forecast of between three per cent and 3.5 per cent this year was encouraging, representing good news for smaller tourism businesses.

"We're optimistic these forecasts will give people the confidence to take more short breaks," she said.

Updated: 12:06 Thursday, March 18, 2004