CHANCELLOR Gordon Brown’s Budget statement has been given broad support by the Institute of Directors (IoD).

The regulation package was welcomed because it is something the IoD has been arguing for, both privately and in public, recently.

Commenting on the 'Better Regulation' package announced in the Budget, IoD Kent Chairman Alyson Howard said: "The 'Better Regulation' proposals are a serious attempt by the Government to address the concerns of business facing the rising tide of regulation.

"The IoD supports the Government's endorsement of the Hampton Review and the Better Regulation Task Force report.

"If the Government manages to implement these proposals, business will be very happy. The key is implementation and seeing fine words translated into action.

"The Government should publish an annual review of exactly which regulations have been removed and by how much the cost of red tape has been reduced. Business involvement in the de-regulation process is fundamental to its success.

"The IoD will establish its own Regulatory Task Force to help identify specific regulations which require revision or removal."

On the question of fiscal policy, the IoD is concerned with the conduct of tax and spend.

It says the rising burden of taxation over the next five years will have a negative impact on economic growth, but the Treasury omit any reference to this threat in the Budget Report.

The IoD has called on the Chancellor to introduce a new Third Fiscal Rule - a commitment to reduce the tax burden as a proportion of GDP, over the economic cycle.

Ms Howard said: "The business way to improve the productivity and efficiency of the public services is via greater choice and competition.

"So far, Government policy has been back-to-front. Radical reform of the public services should have preceded the spending build-up. Instead, marginal reforms have followed.

"The IoD would also have liked to have seen greater encouragement for pension saving, particularly for those on low and middle incomes."