The Government's decision to revise its capital gains tax plans has been welcomed by Bradford Chamber of Commerce which was among a united front of business organisations protesting that the original proposals would damage firms and deter entrepreneurs.

Chancellor of the Exchequer Alistair Darling had originally announced that a sliding scale of CGT rates would be replaced by a single rate of 18 per cent from April.

This caused an outcry from businesses organisations including Chambers of Commerce, the Confederation of British Industry, the Institute of Directors and the Federation of Small Businesses.

They claimed that the new rate would damage small firms and put a brake on new business creation.

The Government appears to have listened to its critics and Mr Darling has announced a lower CGT rate of ten per cent on gains of up to £1m, with the 18 per cent rate remaining for everything above that. The new lower rate - called capital gains tax entrepreneurs' relief - is expected to save firms around £200m a year and benefit some 80,000 people.

Welcoming the changes, Bradford Chamber of Commerce chief executive, Sandy Needham said it was good that the Government had listened.

She said: "Although the Chancellor's original proposals were intended to tax wealthy people who were making large gains from enterprise without actually running businesses, they would have been damaging to many small firms.

"There was an overwhelming outcry against the planned changes with every business organisation in the UK calling on the Chancellor to reverse his proposals. It was first time to my knowledge that there had been such a united front among business over an issue.

"Whilst we still have to study the full details, we are delighted that the Chancellor has backtracked on its original proposals that would have damaged many small firms and discouraged entrepreneurs at a time when the Government is committed to encouraging enterprise."

Bradford businesswoman Sue Coffey, who runs marketing and public relations firm Zymo from offices in Eldon Place, said she was relieved at the Government's decision.

She said: "I'm not qualified to comment on the detail but the flat rate CGT as originally proposed would have been very difficult for many small business owners when they were deciding to retire or sell their businesses.

"I am sure that this change of mind will be welcomed by most among entrepreneurs."

Peter Geldeard, tax partner at the Bradford office of accountants Horwath Clark Whitehill, said that while there were conditions to be met in order to qualify for the lower CGT rate, many entrepreneurs would benefit.