THE chancellor’s decision to immediately abolish stamp duty for most first-time buyers has been welcomed after a budget which contained gloomy growth forecasts.

Those taking their first step on the housing ladder will not have to pay any stamp duty on purchase prices up to £300,000, meaning 80 per cent will pay nothing at all.

 Other budget highlights included:

* higher road tax for diesel cars, but not vans

* keeping the VAT threshold for businesses at £85,000 for the next five years

* setting aside £3bn to prepare for Brexit

* an emergency cash injection for the NHS, with £350million for this winter

* reforms to universal credit so claimants will not have to wait so long for the first payment

* more money for artificial intelligence, 5G and digital skills.

Tom Davis, 22, from Poole, helps run a small IT business in Boscombe and is due to exchange contracts on his first home with partner Chloe this week.

He said: "The budget announcement around stamp duty has just saved me £2,500-plus of my hard earned cash. I've never been excited about a budget before, but this one had me jumping up in excitement.”

Nigel Smith, managing partner of Ellis Jones Solicitors in Bournemouth, said: “I’ve been banging on about stamp duty, and its effect on the housing market, for years so it’s good to see that first-time homebuyers will no longer have to pay this tax on properties of up to £300,000. However, that should be just the start. The change should be extended to all buyers as soon as possible.”

Julian Smith, tax partner at Poole chartered accountants and business advisers PKF Francis Clark, said the stamp duty policy was “good news” but added: “”At the risk of sounding churlish, it’s a pity the measure was not extended to all buyers moving up the housing ladder.”

Ian Girling, chief executive of Dorset Chamber of Commerce and Industry, said: “Businesses would have breathed a sigh of relief to see the VAT threshold kept at £85,000 for the next five years.

 “The chancellor’s decision to bring forward the pegging of business rate rises from the RPI measure of inflation to CPI will be welcomed although many of our members will feel that fundamental reform is still needed.

“Investment in 5G mobile networks, fibre broadband and artificial intelligence plus a further £2.3bn for research and development is encouraging.

“We must do all we can in Dorset to fight for our fair share of this money, especially as our digital and technology economy is one of the most vibrant nationwide.”

Maximillian De Kment, founder of Lovett international Estate and Lettings, said: “The top end of the market is what needs stimulation. It got mortally injured by stamp duty rises from three per cent to 10 per cent plus. The upper market then died at Brexit with all foreign investment leaving our country.”

Ian Rodd, managing director at Ferndown-based chartered accountants and independent financial advisers Ward Goodman welcomed the doubling of the amount that could be invested with tax relief under the Enterprise Investment Scheme. The announcement of £500m for 5G and full fibre broadband was also good news, he said.

“The best news comes for house buyers with the abolition of stamp duty on first time buyers with a saving of up to £5,000 for those buying homes worth £300,000 or less," he added.

Gary Neild, managing director of Poole-based Blue Sky Financial Planning, said: “The reduction in stamp duty for first time buyers is a step in the right direction.

“The impact will be relatively small but confidence is key and it will only help at a time when we are faced with uncertainty in the UK.

“Hopefully, the government will see fit to eventually abolish stamp duty, a tax which in my opinion is counter-productive to economic growth and, relatively speaking, doesn't raise as much tax revenue as in other areas.”

Simon Hawtrey-Coombes, managing director at DPD Local Bournemouth, welcomed investment in AI and electric car charging, but was unhappy at the rise in tax on diesel company cars.

He said it was disappointing that education was not getting more than a £600 per student A-level maths increase. “We should in light of disruptive technologies educate and invest in creativity and future proofing our students outside of the academic boom,” he said.

Darren Money, creative director at Boscombe brand agency the Global Group, said: “As an entrepreneur with a UK client base I'm disappointed not to see more financial encouragement for the growth of the UK economy. With Brexit fast approaching we need to focus our attention on growing trade within UK.”

Alex Simmons, partner with chartered accountant Saffery Champness LLP in Bournemouth, said: “The vast majority of the measures announced were geared towards  investment in the future with housebuilding and technology being the central themes. There was very little in the way of spending cuts or tax generation initiatives to fund the amounts to be spent so this represents a large gamble on increasing productivity."

Helen Stacey, managing director of Bournemouth-based Aspire Jobs, said: “Living wage is increasing by 4.4 per cent to £7.83 in April 18. Great news for employees on living wage, however it puts extra pressure on small business who are already dealing with apprentice levies, auto enrolment, lack of available candidates and a downgraded growth forecast to 1.5 per cent.

“The universal credit rollout will reduce from six to five weeks but it’s still too long for those who are in need of benefits. However, the announcement of 100 per cent rollout to claimants within seven days of applying from January is to be applauded.”

Alan Kenny from DWP Housing Partnership, Dorset’s biggest private landlord with 3,000 tenants, said: “We very much welcome the Chancellor’s announcement about universal credit.

“The £1.5bn package will remove the seven-day waiting period at the start of a claim and enable tenants to access payments more quickly.

“It will also assist tenants who are transitioning on to universal credit to continue to receive housing benefit for two weeks.

“This is a logical response to the concerns we had and which had been voiced across the political spectrum.”

Churchill Retirement Living is to launch its own scheme to help older people downsize after declaring the budget a “huge disappointment”.

Spencer McCarthy, chairman and chief executive of the Ringwood-based retirement developer, said:  “After all the talk beforehand, today’s budget is a huge disappointment, and sadly it’s all too predictable from Mr Hammond.

“The government is still focusing far too narrowly on one end of the housing market. When will they realise that the only way to improve things is by looking at the full range of housing supply?”

Churchill is launching a ‘bridge the gap’ solution to help customers move, with no interest payable and no accrued amount payable at the end of the term.

Lorna Carver, director of Dorset Local Enterprise Partnership (LEP) welcomed the focus on some of its core priorities, including housing, skills, innovation and business support.

She said: “The increased support for more housing is particularly pertinent to Dorset.  Like most counties in the south, housing affordability and availability are key issues and support is needed to help provide a sufficient supply of homes to meet the needs of Dorset’s economically active population.

“Additional support for boosting skills will help us to achieve our vision for a high-skilled workforce in order to meet the needs of Dorset’s growing economy and priority sectors.”

Liz Tapley, who runs TaxAssist Accountants in Poole, welcomed several policies which she said were good for small businesses.

"The £44bn housing investment announcement will be a welcome contribution to local economies, with many local businesses, particularly in the construction industry, reaping benefits,” she said.

"Many local business owners will also be looking at available opportunities under the £2.5bn scaled-up British Business Bank, the £500m investment announced for new technologies including 5G mobile networks and fibre broadband and £2.3bn investment in research and development.

"We will be looking in more detail at the many announcements made by the chancellor which will impact on small businesses, but overall there has at last been some recognition for the over five million small businesses across the UK who contribute a massive £1.8trillion to our economy.”

Simon Boyd, managing director of REIDsteel in Christchurch, said: “It was disappointing but not surprising to see productivity growth and business investment figures revised down.

“Measures in the budget to encourage investment, training and new technology may go some way to address this, yet the only real solution remains with a clean Brexit from the EU and the freedom that offers our businesses free from the constraints of EU regulations and directives.

Nigel Costley, South West regional secretary for the TUC, said: “All public sector workers have had seven long years of real pay cuts. Today, the chancellor is once again, skirting around the issue, cherry-picking some sectors and leaving others out in the cold.”