This was a Budget, said the Chancellor, for “continuing to help people through the global recession and prepare people for the opportunities of the future”. In particular, he referred to a budget of “fairness and opportunity” and the need to “invest and grow our way out of recession”.

The headlines were, of course, the increase in higher rate income tax to 50%, the restriction of higher rate tax relief on pension contributions and the withdrawal of the personal allowance for “high earners”.

It was confirmed that VAT would return to 17.5% on 1 January 2010, but we would not be surprised if a higher rate was announced later in the year in the Pre-Budget Report.

We welcome the increase in the amount that can be invested in an ISA to £10,200.

The one year increase in the rate of capital allowances for investment in plant and machinery to 40% will be good news, as is the extension for another year of the ability of small companies to carry back trading losses against profits of earlier years.

We are disappointed, though, that the small companies’ rate of corporation tax remains at 21% and did not revert to 20%.

There are some useful relaxations of some of the rules concerning EIS/VCT investment, but no changes in the amounts that can be invested.

There were no changes to capital gains tax, and in particular, no enhancement of Entrepreneur’s Relief. Inheritance tax remains unchanged too.