GORDON Brown's 11th and probably final Budget as Chancellor was dubbed a curate's egg after wrongfooting opponents with a surprise 2p off the basic rate of income tax.

In the final 30 seconds of his 50-minute speech, Mr Brown pulled a rabbit out of the hat to win cheers from his supporters and provoke glum looks among the Opposition. But most observers claimed that taken with other measures, the headline-grabbing cut would not make much difference to most people.

BOB SCRUTON, finance director of Kent Reliance Building Society in Chatham, called it a curate's egg. "Like most of Gordon Brown's pronouncements, it sounds very good but as a cautious accountant, I'd like to see the detail," he said.

"I can't believe it's as good as it sounds and if it's neutral across the piece, there must some things in there that are not so good that we don't know about yet."

PAUL WOOKEY, chief executive of inward investment agency Locate in Kent, based in West Malling, claimed that the two per cent cut in corporation tax would encourage more foreign businesses to look at Kent as a good place to do business.

He said: "The UK has a long established reputation as a location of choice for many foreign-owned businesses. The decision by the Chancellor to cut mainstream corporation tax from April 2008 from 30p down to 28p, means that the UK will have a more competitive rate than America, Germany, France, Japan, and all of our other rival locations.

"We anticipate greater interest from foreign-owned companies looking to set up in the UK and are confident that our region offers many other advantages, not least its location, infrastructure and skilled workforce."

SEEDA chairman JIM BRATHWAITE said the south east accounted for a quarter of the UK’s regeneration and development spending. Under the new proposals, small and medium-sized companies will receive 175 per cent tax relief on R&D expenditure (previously 150 per cent) and large companies will get 130 per cent (125 per cent).

The Budget also introduces a new environmental tax credit worth £40 million a year to businesses, and increases the funding available for SEEDA and Business Kent Link to support small businesses. It will go up from £140 million in 2006/7 to £240m in 2007/8.

Mr Brathwaite said: "The Chancellor’s Budget recognises that, for the UK to meet global challenges and secure its global competitiveness, performance will need to be driven by flexible, enterprising and highly-skilled businesses and workers.

"The R&D tax credit changes are an acknowledgement that we must invest in success to meet the global challenge and build on the South East region’s existing position as the powerhouse of the UK economy."

He added that extra funding for environmental innovation and energy efficiency would enable business to contribute to the UK’s climate change targets while at the same time boosting competitiveness and efficiency.

MIKE LAZENBY, chief executive of Kent Reliance Building Society, followed the Chancellor's speech in Bangalore, India. He forecast that far from a tax-cutting budget, it would almost certainly mean that many people would be paying more, especially through higher National Insurance contributions.

"Given that the economy is quite robust at the minute, the public finances are in a mess and there's no logic to it," he said. "As ever, the devil will be in the detail."

He welcomed higher tax allowances for pensioners but because they were not being introduced for several years, many "may not live to enjoy it". He added: "The whole thing is promises for the future and nothing for today, other than little bits of tinkering around the edges which he's very good at doing."

NICK AUSTEN, of law firm Vertex Law, based at Kings Hill, West Malling, welcomed the cut in corporation tax on businesses from 30p to 28p from April 2008. It had been out of kilter with other European countries, he said, and was making Kent and the South East "a more expensive and less attractive trading environment".

He said: "The 28 per cent mainstream CT rate should assist Kent's ability to attract and retain inward investment." He was also pleased with an increase in tax relief for research and development, but said the industry in Kent, especially at Kent Science Park, Sittingbourne, would give it only a muted welcome because it was less than it was hoping for.

Kent businesses had been suffering from taxation of dividend income earned by overseas investments and were looking for cuts. "This is particularly relevant for many of Kent's businesses with international group trading activities, which help to strengthen the region's economy by repatriating international profits," he said.

So far, he had not seen any mention of a cut and it that was the case, "then an opportunity to boost the region's standing as a base for international corporate HQs may have been lost."

A BUILDING society with branches across the county welcomed financial support for energy efficient homes. Yorkshire Building Society said it would launch a pilot project for existing borrowers that would make further advances available for energy efficient enhancements for their homes.

Pensioners are to be offered grants of up to £4,000 to insulate their homes. Mr Brown also announced zero stamp duty for homes with zero carbon emissions. There would also be financial help to firms on environmental improvements and audits.

Duty on bio-fuels will be 20p less than on fossil fuels and this differential will remain until 2010. He rejected a suggestion to levy Value Added Tax at 17.5 per cent on airline tickets, saying his other measures would already make a significant difference to carbon emissions. He did not say that politically such a decision would prove highly unpopular.