Bradford’s business community gave a mixed reaction to the announcements made in yesterday’s pre-election budget.

Bradford Chamber of Commerce cautiously welcomed the scrapping of stamp duty, a move the property sector has been “crying out for”, as it will encourage more first time buyers.

David Cameron's reaction to the Budget

But that comes as Chancellor Alistair Darling turned the screw on the better-off, doubling the threshold for stamp duty on home buying from £125,000 to £250,000 – a move funded through an increase in stamp duty to five per cent for residential property over £1 million from April next year.

Mr Darling also announced business rates are to be cut for a year from October, meaning a tax reduction for 500,000 small firms across the country.

Bradford Chamber president Harold Robinson said: “A cut in business rates, albeit for one year only, will help cushion some of our members at this time, and the increased relief on capital gains tax is good news too.

“Increasing the flow of credit is a response to the successful lobbying of the chamber network.

“We would have liked to have seen a reversal of the planned rise in National Insurance Contributions next April as well as scrapping the increase in corporation tax but these were ambitious hopes, admittedly.”

Mr Robinson said the property sector would welcome moves to scrap stamp duty, but warned the city’s regeneration programme will not benefit from yesterday’s announcements.

He said: “Property people will welcome the scrapping of stamp duty as they are crying out for measures to help this sector.

“However, it’s only for first time buyers, few of whom are in a position to buy right now.

“There’s little else in there on property, so Bradford’s regeneration programme gets no extra support.”

A guarantee of a job or training for every 18 to 24-year-old after six months out of work is to be extended until March 2012.

Mr Robinson welcomed the investment in skills, but said he was disappointed there was nothing specific for manufacturing and exporters.

He said: “Investment in skills and innovation is to be applauded too, as we need to help businesses bring the economy out of the recession as quickly as possible, so training staff and removing skills shortages will be important.

“The motorways investment is a good idea although there’s still a long-term need to address fundamental problems with funding regional transport schemes.

“That was never going to happen today so remains on our wish-list for the future.

“It’s also disappointing that there’s nothing specific for manufacturing and exporters, so that’s to hold onto as well.

“Today was obviously a very political budget, designed to create more space between Labour and the opposition and it wasn’t, in any case, expected to be the boldest bunch of economic announcements because of the state of public finances.

“Tackling the deficit has been deferred for the next government to face later in the year, it seems.”