WORCESTERSHIRE'S business community has given what its leaders describe as a "muted" welcome to Gordon Brown's tenth Budget.

"His proposals were wide ranging and had several points that will be welcomed by both business and individuals," said Christopher Harvey, policy and representation head of Herefordshire and Worcester-shire Chamber of Commerce.

"But he also left out many areas where business would have liked to hear more. Overall, business reaction is likely to be muted."

Mr Harvey believed business will welcome the additional spending on education that was outlined for schools.

"However, it is important this investment should deliver results in higher standards," he added.

"Too many employers still find that there are issues arising from poor performance in literacy and numeracy and we need to see an improvement."

The opening of further education to people up to the age of 25 to help them achieve qualifications up to A Level without charge was welcomed by the Chamber, as was the support for women going into work and for childcare.

"Making research and development tax credits available to more businesses is very welcome and this is something that chambers had been arguing for," said Mr Harvey.

There was a proviso in supporting the changes that there must be a move towards more environmentally-friendly transport.

"It must be recognised that, in many rural areas, four- wheel drive vehicles are an essential part of the equipment needed by some people, for example farmers and growers," he added, "and therefore the new higher rates of duty add a further level of cost to those rural businesses."

The Chancellor glossed over the issue of pensions saying he would wait until the Pensions White Paper later this year.

"There is a major problem with pensions in this country," Mr Harvey maintained.

"A large part of the problem was caused by Gordon Brown taking away the dividend tax credit which has taken £5bn a year out of pensions. Business would have liked to hear some words that would help see this problem being dealt with and we will have to hope it is in the White Paper.

"Business has also wanted to see moves to bring together the National Insurance and PAYE systems to reduce its great complexity and cut the cost to employers of administration.

"The Chancellor said he would review the issue for small business, but we would have liked to hear a commitment to the overall alignment of these two systems."