The first Tory Budget in 18 years was a "double-edged sword" for businesses, according to a range of spokespeople from the private sector. Book-balancing and reductions to personal and corporate tax were welcomed, but other measures could set businesses back, they said. Read on for the full reaction.

John Longworth, director general of the British Chambers of Commerce, said: "George Osborne has delivered a genius balance of politics and economics that provides stimulus for the economy while continuing the tough task of eliminating the deficit. Steady deficit reduction means the economy still has the oxygen it needs to grow.

“The chancellor has confirmed that Britain is open for business. Firms across the UK will cheer not just the new permanent Annual Investment Allowance, further Corporation Tax reductions, and lower National Insurance for small businesses, but also commitments to childcare and higher education that help them employ Britain’s best."

Darren Fell, CEO of Crunch Accounting said: “Overall we thought this was a hit-and-miss Budget for freelancers and micro-business owners.

“The continuing reductions in corporate and personal taxes can only be seen as a good thing, but the changes in dividend taxation and the new restrictions to the Employment Allowance will negatively impact one-person limited companies. George Osborne is essentially giving with one hand and taking away with the other.”

John Cridland, CBI Director-General, said: “This is a double edged Budget for business. Firms will welcome measures to balance the books and boost investment, but they will be concerned by legislating for wage increases they may not be able to deliver.

“The further reduction in corporation tax is a welcome surprise but tax reductions for employers don’t appear to match the businesses most affected by a rise to £7.20 in the National Minimum Wage next April – a 7% increase.

“The CBI supports a higher skilled, higher wage economy, but legislating for a living wage does not reflect businesses’ ability to pay. This is taking a big gamble that the labour market can absorb year-on-year increases of an average of 6%.”

Jonathan Kinsey, Executive Director at CBRE Rating said: “The Chancellor is sticking to his devolutionary guns, announcing that Sheffield City Region, Liverpool City Region, Leeds and West Yorkshire are all on the road to receive similar autonomy to that recently awarded to Greater Manchester.

“If this translates into the power to retain business rate revenues above and beyond any growth in the levy, it should beef up local authority coffers, enabling them to respond directly to local needs.”

Mark Sismey-Durrant, CEO of Hampshire Trust Bank, said: “The generous increase of the annual investment allowance may well be the catalyst which small businesses need to invest and grow their companies.

“Our research found the average SME has £230,000 sitting in their current accounts and nearly half (42%) are planning to invest some of this money in the near future.”

Debbie Wosskow, founder and CEO of Love Home Swap and chairman of SEUK, the UK's sharing economy trade body, said: "Today's Rent-a-Room relief increase is great news for individuals wanting to make money from their spare bedrooms.

“For SEUK, these sorts of changes tie in to the spirit of the sharing economy, in encouraging a nation of micro-entrepreneurs. That said, whilst it's great that barriers have been removed there is a still a long way to go - the last change to this relief was in 2005 and we don't want to wait another decade for it to be increased again.

“It would also be great to see such a tax relief extended to other verticals of the sharing economy - such as driveways and household items, like power tools."

John Allan, national chairman, Federation of Small Businesses, said: “There was further support to reduce corporation tax, fix the annual investment allowance and boost regional growth, where investment in roads will be particularly well received.

We agree with the focus on productivity but need to see the details to raise skills through the apprenticeship levy on large firms. Planning reforms are also critical to raising productivity and again we look forward to seeing the proposals on Friday.

“However, even though offset by a welcome increase in the employment allowance, some will find the new National Living Wage challenging. Changes to the treatment of dividends will also affect many of our members.”