THE Budget was a short term measure designed to keep the Tories in office according to trades union leaders and tax experts.

 

The Chancellor George Osborne increased the personal allowance tax threshold and introduced an ISA for people saving for a mortgage deposit, which the government will contribute 25% to.

He claimed Britain was recovering from the recession and said "the sun is shining and we are fixing the roof" by using cash saved from welfare and generated from interest payments towards paying of the national debt.

He said more people were in work than ever before and the "hard work and sacrifice had paid off".

He cut duty on beer by 1p and by 2% on whisky by and announced tax relief for the North Sea oil industry to help through the current crisis with falling global prices.

However business leaders said he could have been bolder and offered incentives to key Scottish businesses like tourism.

Liz Cameron, Chief Executive of Scottish Chambers of Commerce, said: "This Budget is one of significant contrasts for businesses in Scotland. There is some very good news for some of our key industries such as the oil and gas sector and our drinks industry.

"Action on VAT on tourism and Air Passenger Duty would have been necessary for us to provide a resounding endorsement."

Union leaders said it was a "bribe".

Paul Kenny, GMB General Secretary, said: "Even a blind person would see the short term bribes Osborne is offering today.

What he is planning however is the most draconian cuts in services that we rely on for a civilised way of life.

Paul Gallagher, Tax Partner at Ernst & Young Scotland, said: "On the personal tax side, the Chancellor had a few goodies for potential voters, covering ISAs and his usual favourite of Personal Allowance

"All in all, the Budget content seemed clearly focused on the short-term election plan."

House builders welcomed the help for people saving for deposits but said there needs to be houses for them to buy.

Philip Hogg, Chief Executive of trade body Homes for Scotland, said: "The Chancellor has again delivered welcome support for home buyers with this new Help to Buy ISA but unless urgent action is taken by the Scottish Government to address the housing crisis here it could be of little use.