It was a budget which threw only a few welcome sops to a few people. But this is no time for dancing in the streets, says DUNCAN MEREDITH, of chartered accountants Garbutt & Elliott of York.

THIS was never going to be a tax raising budget, but the Chancellor made it clear that his tenth Budget speech would not be a tax giveaway either.

The message seemed to be that any money found from efficiency drives in the public sector would go on investment in education.

Nevertheless, there was welcome news for families on low income, as tax credits were singled out for special enhancement.

There was also news of a further grant into the new Child Trust funds, when the child reaches seven.

For people of York and North Yorkshire, the promise of support for jobs and skills will be welcome.

The increase in the stamp duty threshold to £125,000 will help first time home buyers, but it was disappointing not to hear of any help from inheritance tax charges for homeowners and those with modest estates.

Also, there was nothing about the enhancement of ISAs, with investment limits frozen and no news of a further extension to their availability.

Small businesses will be pleased with a number of encouraging tax breaks, including higher allowances for capital expenditure and help with the administration of VAT, in raised annual and cash accounting limits. Figures for UK Inward Investment were pleasing to hear and York and North Yorkshire will want to attract its own share of that.

Businesses at the York Science Park will have been glad to hear the Chancellor promise help for science, enterprise and innovation, particularly extra funding for scientific invention and discovery.

Typically, such businesses seek to attract investment from Business Angels so they will be overjoyed to hear of the doubling in the annual Enterprise Investment Scheme limit.

Individual investors will now be able to obtain valuable income and capital gains tax relief on up to £400,000 in a tax year. Venture Capital Trusts should also continue to be a source of funds.

There are plans to make Research and Development Tax Credits available to more businesses, making it more generous and so hopefully increasing its uptake.

The limit on the number of employees in a company making a claim will go up to 500 (at present it is only 250).

There will be winners and losers among road users, with the overhaul of Vehicle Excise Duty, but with the continuing rise in fuel duties any relief will be most welcome.

The introduction of UK Real Estate Investment Trusts was confirmed. The idea is to create investment vehicles for individuals, enabling them to benefit from a diversified portfolio.

This has been welcomed by the property industry and should encourage more people to become property investors.

Similarly, the new Planning Gain Supplement was confirmed.

While it is intended that the local community will benefit from this money, it remains to be seen whether it will stifle property development in the region.

The promised review of income tax and National Insurance will hopefully produce more clarity but there is a suggestion that the filing deadline for income tax returns may be brought forward to September 30 for hard copy paper (November 30 for returns filed electronically).

That could have drastic implications for people in York and North and East Yorkshire, who right now are struggling to get their forms in on time.

Unfortunately, as always with Mr Brown, his speech was light on detail, and no doubt we shall all be surprised by some of the content of the press releases.

:: Main key points

Annual inflation increase in fuel duty frozen until September 1

Cigarettes up 9p per packet

Beer up 1p, wine up 4p, spirits frozen, champagne and sparkling wine frozen

Minimum wage increased to £5.35 from October

Child benefit up to £17.45 a week from April

Child element of tax credit raised by 14 per cent over the next three years

£250 and £500 to be invested in 1.5 million Child Trust Funds at the age of seven

Stamp duty exemption raised to £125,000

Exemption from inheritance tax raised from £275,000 to £325,000

Free national off-peak bus travel for pensioners and disabled people from 2008

Excise duty cut for low emission vehicles

Updated: 10:58 Thursday, March 23, 2006