The budget statement included an economic growth forecast of 2% to 2.5% in 2006, a freeze in fuel duties, increases in education spending, an extension in research and development tax credits, the creation of a £1bn energy and environmental research institute and a new labelling scheme for energy efficient goods to make homes greener.
John White, TTF chief executive, said: “It seems like the chancellor has again been fairly prudent in his forecasts. He has not done anything to tarnish his reputation of being generally business friendly.
“I am pleased to see the research and development tax credit extended and interested to hear about a new energy and environmental research institute. Environmental issues have risen to the top of the politcal agenda and are likely to stay there.
“This gives the timber industry and the TTF opportunities to get the message across that there is only one truly sustainable building material – wood.”
Nick Howarth, Howarth Timber Group managing director, described the budget as “non-radical”.
He welcomed the government’s spending on education and the environment but questioned its ability to achieve public sector efficiency savings, which could lead to taxation and other burdens on private industry.
Mr Howarth said: “There is an element of the public sector squeezing out the private sector in competing for resources.”
The Freight Transport Association (FTA) welcomed the freeze in diesel duty until September but said the chancellor could have kept duties on hold for a whole year to establish more stability in transport operating costs.
The FTA said bulk diesel prices have risen by 10% over the last year.
