BUSINESS leaders in York and North Yorkshire today gave Chancellor Gordon Brown's pre-budget report a general thumbs-up.

The Chancellor's plans to extend the 10p corporation tax band for small firms, his proposed simplification of the VAT system and his planned £50 million venture capital fund for small businesses were welcomed by Roland Harris, president of the 800-member York and North Yorkshire Chamber of Commerce.

He said: "This has got to be good for business in the region.

"It would be churlish to nit-pick at this stage."

Agreeing with him was Brian Gillies, northern area director of the Institute of Directors, who said that the proposals for a new research and development tax credit for large business would benefit the region.

"It is particularly positive news for York, which is seeking to attract bio-science ventures as inward investment."

But Mr Gillies said: "I still eagerly wait to hear what Trade and Industry Secretary Patricia Hewitt is going to say about reforms to help manufacturing, flagged up by the Chancellor."

For Gillian Cruddas, chief executive of the York Tourism Bureau, the most significant announcement was the earmarking by the Chancellor of £2.7 billion in rural aid following the foot and mouth crisis. "We don't know where or how this money will be allocated, but because York is marketed as the gateway to the Yorkshire countryside we would welcome consultation and backing."

David Walker, president of the 400-member York branch of the Institute of Chartered Surveyors, was more critical of the statement, questioning the detail of the plan to extend the 10p band of corporation tax to help small businesses, and criticising the proposed increases in pensions "which would amount to just £1.50 per couple per week."

But he welcomed the abolition of stamp duty on business property transactions of up to £150,000.

Meanwhile, farmers and rural leaders gave a cautious welcome to news of the Government's announcements on rural recovery and transport spending.

Derek Watson, chairman of the York and County National Farmers' Union, said he welcomed news of £2.7 billion for rural recovery.

"The countryside needs a lot of support at this particular point in time and this seems to be excellent news," he said.

"However we will have to wait and see what exactly it is going to be spent on before we start celebrating."

Natalie Warriner, who is a member of the Pickering Area Partnership - which lobbies on specific rural issues such as transport - said the commitment to a better transport network was also to be welcomed.

"This money is obviously also for urban areas, but my hope is that a good proportion will be spent on improving the situation for rural areas too."

Updated: 12:18 Wednesday, November 28, 2001