THE first full Labour budget has evoked positive reactions among firms in Bexley and North West Kent.

The general consensus among local firms is that the budget is good news for business, including smaller companies.

Chartered accountancy firm McBrides held a pre-budget briefing to gauge opinion before Gordon Brown's first budget.

The expectations of those present turned out to be largely in line with Mr Brown's budget announcement. More than 80 per cent of business men and women accurately predicted the exact levels of tax increase for petrol and cigarettes at the briefing.

And 60 per cent of them also got it right on income tax and Capital Gains measures.

But the changes in national insurance have surprised Kent businesses - the new uniform rate of 12.2 per cent offering mixed blessings to small businesses, especially those employing a few staff in the higher pay bracket.

Staff at Jackson Batten financial advisors in Swanley also said the budget was good on the whole for investors and small businesses.

Managing director Robert Rackliffe said: "On balance, it was a good budget for small companies.

"We welcome the reduction in the tax rate, the changes to the proposed arrangements for paying tax and the welfare to work scheme should help small businesses to take on youngsters.

"But we are less pleased with the overall increase in national insurance contributions."

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