Following yesterday's spring budget, business organisations have been giving their reactions to Jeremy Hunt's plans.

Across business sectors, there were cautious welcomes, but also unanswered questions and missed opportunities...

Phil Smith, MD of Business West, said: "The budget offers some initiatives that we expect our region's businesses will benefit from. The creative and hospitality industries, which are significant contributors to the South West's economy, should welcome the Chancellor's specific tax measures to support them. We also welcome the news that the Government has reached agreement with Hitachi to purchase the Oldbury-on-Severn site in South Gloucestershire. Development of this site could generate thousands of jobs and help boost the economy. It also further underscores our region as a clean energy hub.

"For the South West SME, the recovery loan extension should help those navigating challenging times, and some should benefit from the change in the VAT threshold.

"However, what the region is still lacking is a long-term strategy that helps support a strong economy, and our businesses and communities to thrive. We need initiatives that address fundamental structural issues, such as low productivity and sluggish growth. We know our region's businesses want significant action on key issues like transport, housing and infrastructure, something that was lacking in this spring budget."

Tina McKenzine, policy chair of the Federation of Small Businesses (FSB), said: "We welcome the increase in the VAT threshold, as well as the cut to self-employed National Insurance contributions. Elsewhere, we were pleased to see a package of small business support in the budget documents, including commitments to make progress on the HMRC administrative burden and on the national roll-out of the Business Energy Advice Service, as well as extending the Recovery Loan Scheme under a new name - the Growth Guarantee Scheme. Small firms are crucial for economic growth, and we were glad the Chancellor has said that clearly from the despatch box.

"That said, many of those running businesses face serious challenges - not least through rapid hikes in labour and input costs - and many will have understandably hoped there would be more measures announced that would help ease the tough decisions small employers are having to make day-in day-out to keep their businesses going.

"It's not enough to just make ends meet, though that is vital - we need to make great leaps forward for the sake of the economy, and all the small business owners that operate within it."

Rain Newton-Smith, CBI chief executive, said: "Businesses recognise that the Chancellor had to perform a tricky 'high wire balancing act' of giving momentum to the economy without sacrificing hard-earned progress on bringing down inflation.

"Doing that successfully meant focusing on the horizon ahead - and the Chancellor is right to keep his gaze fixed on the structural challenges facing the UK economy.

"Firms were looking for a budget that prioritised delivery while signalling a sustainable plan for growing the economy.

"Giving providers greater long-term certainty will help ensure a successful rollout of crucial childcare reforms and delivers on a key priority for businesses across the country. The reduction in high marginal tax rates for working parents, alongside cutting National Insurance contributions, offers a broad set of measures that will incentivise work at a time when access to labour represents a major obstacle to business growth.

"The extension of the energy profits levy weakens the competitiveness of the sector. Business will be looking for more emphasis on delivery by developing a Net Zero Investment Plan to crowd in the private finance needed to deliver the clean energy transition."

Dr Roger Barker, director of policy at the Institute of Directors (IoD), said: "First and foremost, business was hoping for a budget that would maintain a stable and credible policy framework for business. The Chancellor largely delivered that. However, beyond that, there was little in the announcements that can be regarded as a game-changer for business.

"The net fiscal giveaway of £13.9bn, or 0.5% of GDP, in 2024/25 may at the margin help lift the economy out of its mild recession before an election later this year. However, business still faces the prospect of an economy that is unlikely to experience meaningful growth for some time.

"The Chancellor rightly acknowledged that skills and labour shortages are a major problem for many UK enterprises. Although cuts to National Insurance and boosts to child benefit provision may attract some people back into the workforce, the budget offered little to address the economy's deep-seated skills gaps. This was a major omission and business will be looking to a future government to urgently address this issue."

Representing pubs, restaurants, hotels, attractions and night clubs, Kate Nicholls, chief executive of UKHospitality, said: "The Chancellor missed a real opportunity to show that he backs hospitality and understands the real pain they are enduring. He had a chance to accelerate and unlock hospitality, but instead he has delivered a cut-and-paste budget, maintaining the status quo which continues to act as a drag on recovery.

"Government needs to bear down on the never-ending rising costs that are forcing businesses to shut their doors for good - taking away people's livelihoods and robbing communities of a vital asset.

"Increases to business rates and jobs taxes in April will only increase bills further and contribute to inflation, as venues will be forced to pass these costs onto consumers.

"A lower rate of VAT would have been a bold reform that would drive economic growth, keep prices down and unlock investment in the hospitality sector, one that was projected to grow six times faster than the economy as a whole.

"Hospitality is a sector proven to be a catalyst for growth across the entire nation, as the foundation of the everyday economy. When we perform, the entire economy performs. It's a great shame that the Chancellor has not recognised that."

Sticking with the hospitality sector, Nik Antona, CAMRA chairman, said: "The budget was a missed opportunity to show backing for 'the Great British pub' by significantly cutting tax on draught beer and cider served in pubs. However, freezing alcohol duty until February 2025 will be welcomed by consumers and breweries, helping mitigate an additional hike in costs to be passed on to pubs and pub-goers.

"Making duty on draught beer and cider significantly lower would promote drinking in the regulated setting of a community local and help small and independent producers who sell mainly into pubs and taprooms to compete against the global brewing giants and the likes of supermarket alcohol. CAMRA will continue to campaign for the Treasury and all political parties to back our sensible ask of making tax on pints in pubs 20% lower than the general duty rate."

John Webber, head of business rates at Colliers estate agents, said: "The Chancellor has extended the period for which an occupier must occupy a property to gain empty rates relief from six weeks to thirteen weeks. This is a kick in the teeth for those retail or leisure landlords who are unable to find a tenant for their property, who will end up paying considerably more in business rates for a property from which they are receiving no income. This is likely to deter property investment and values in an already distressed market.

"The Chancellor's failure to right the wrongs of the 2023 Autumn Statement and cancel the business rates increases planned for April was also massively disappointing. This planned increase will impact 220,000 businesses who will pay an extra burden of £1.66bn in tax from April 1, 2024. Colliers has estimated that businesses in the retail sector will pay over £360 million more in business rates, the offices sector around £400 million more and logistic/ industrial sector around £450 million more as a result of the increased multiplier."

Dr Joe Marshall, chief executive of National Centre for Universities and Business (NCUB), said: "In the budget, the Chancellor rightly acknowledged that research, innovation and skills are central to leading the UK into a more optimistic, prosperous age. However, there were no bold, new announcements to truly shift the dial and drive growth through a more innovative, highly skilled economy. Previous commitments to grow public research funding and release more private sector investment are critical, but further intervention is needed to put university funding on a more sustainable footing. Only then will we build, grow and attract further private investment into the UK.

"To unlock economic growth, it is vital that the Government sets an ambitious target and plan to raise private R&D investment. The Government must not forget their commitment to making the UK a Science Superpower. We need action now if we are to continue to build to secure a central role in the age of innovation."

Roger Mortlock, chief executive of countryside charity CPRE, is calling for more affordable rural homes. He said: "The Government's plan to scrap tax breaks for short-term lets is a step in the right direction. But these changes should be applied to all second homes - a major cause of the rural housing affordability crisis.

"AirBnB-style short-term lets have led to ghost towns and villages in some parts of the country, driving people out of the communities that depend on them. A secure and healthy home is a foundation for a decent life and one that many people in rural communities are being denied.

"Much more is needed to fix a crisis that is tearing the soul out of rural communities. We call on the Government to redefine "affordable" in line with local incomes, not market rates, set and deliver ambitious targets for new, genuinely affordable and social-rent rural housing, and urgently bring forward its new regulations on short-term lets."