FRANK McKENNA, chairman of Downtown Liverpool in Business lobby group, said there were no unexpected revelations in the Budget.

“There is nothing particularly surprising within the recommendations,” said Mr McKenna.

But there are forthcoming complexities of tax issues concerning the private sector which will have to fill some of the gaps created by a reduced public sector.

“However, some of the issues around tax need to be carefully followed as it’s the private sector that is going to be able to act as a safety net for some of the pain that the public sector faces,” he said.

“In terms of the Budget’s impact on the public sector, people losing their jobs hits the whole economy and affects all of us.”

He warned that blaming the so-called bloated public sector for draining the state of funds was very unfair.

“In spite of ‘public-sector bashing’ seeming to be trendy at the moment, it was the private sector and the banks who got us into this mess,” he said.

“I hope as much effort is put in by the banks to try and get us out of it.”

There was concern shown for new businesses outside the more concentrated markets of the South East.

“I am pleased to see that new business start-ups outside of London and the South East will be helped by National Insurance relief,” he said.

“However, I would have liked to have seen this extended to existing businesses within the small and medium-sized enterprises (SME) sector.

“I would also like to see a reintroduction of older government policies, for example a weekly allowance for the unemployed starting up their own businesses that matches the benefits they already receive. I don’t think we will see the full picture of public expenditure until the spending review this autumn.”