Chancellor Alistair Darling has given his final Budget before the May general election.

The Chancellor has sought to gain Labour support from small business as he announces a range of measures to help get them out of the recession, in what could be his final Budget.

Chancellor Alistair Darling has put small businesses and first-time buyers at the forefront of what is the final budget before the general election, and possibly the final budget for Labour.

In a last ditch rally for voters, the Chancellor has announced a series of measures including £2.5 billion of support for small business in order to boost skills and innovation. But the CBI called the announcements “modest”.

The CBI’s initial reaction was one of cynicism. Richard Lambert, Director-General said: “With the election just weeks away, this was a clever, political budget. However, anxiety remains on how the deficit is going to be paid down, and the growth forecasts for 2011 and beyond are still on the optimistic side.”

The Chancellor has also promised a one-year business rate cut, starting this October, to help more than half a million companies; doubling relief on capital gains tax on entrepreneurs; and investment allowance for small firms has been doubled to £100,000.

David Frost, Director General of the British Chambers of Commerce (BCC), commented: “After two years of economic downturn, the Chancellor has clearly recognised the need to place business at the heart of this Budget. Doubling the annual investment allowance, help with business rates, and allowing entrepreneurs to keep more of their gains will prove especially popular.

“The Chancellor could have done more to set out a clear plan for the reduction of the budget deficit, which continues to threaten business confidence and investment.”

Businesses of all sizes will not welcome news that a rise in fuel duty is set to go ahead. A rise of 3 pence will be phased in between April 2010 and January 2011.

Other key points in the 2010 Budget include:

•    Duty on cider to rise by 10% above inflation from 28 March 2010
•    Wine, beer and spirit duty up 2% a year until 2013
•    Basic bank accounts guaranteed for a million extra people
•    Six month work or training guarantee for under 24s extended to 2012
•    Amount of time over-65s have to work to receive work credits reduced
•    Gradual removal of tax allowances for those earning over £100,000
•    Inheritance tax threshold frozen for four years
•    Funding for 20,000 new university places in science and maths
•    £35m enterprise fund to help university-launched businesses