Business lobbies have given a warm response to George Osborne’s Budget, which was arguably his most pro-business yet.

The Confederation of British Industry (CBI) said it would put “wind in the sails of business investment, especially for manufacturers”, adding the chancellor had zeroed in on areas that would encourage continued growth.

“The CBI has pushed hard for this significant and much-needed energy package that will help keep manufacturing jobs in the UK, while underpinning vital investment in new energy,” said CBI chief John Cridland.

“The doubling and extension of the Annual Investment Allowance, together with making the seed enterprise investment scheme permanent, will be a shot in the arm for many medium-sized businesses.”

Meanwhile the Federation of Small Businesses (FSB) said Mr Osborne steered “a steady course” that would add to momentum for growth.

"This was always going to be a ‘steady-as-you-go' Budget for business, designed to get the UK's financial affairs in order,” said the FSB’s national chairman John Allan.

“The chancellor delivered a Budget to maintain positive momentum in the economy, while incorporating fiscal prudence.

“Today's Budget offered a clear signal for businesses to grow through the increased investment allowance, and with a focus on manufacturing. The £7 billion package to cut manufacturing energy bills will help create jobs and strengthen this key sector.”