Just what the doctor ordered

But smokers, drinkers and brewers in Sussex took another battering from the Chancellor and there were mixed fortunes for motorists.

The Chancellor put an extra penny on a pint and 4p on a bottle of wine but froze spirits prices. Cider is also up 1p per litre and higher strength alcopops by 1p per 33cl bottle. A packet of cigarettes rises by 25p, with all duty going to the NHS.

Bev Robbins, chairman of the Sussex Society of the Licensed Victuallers Association, said: "I think the French will be giving him their Legion of Honour medal for helping the French economy. People can just go over to the supermarkets there and stock up, and nothing is being done to support our trade."

Campaign for Real Ale spokesman Iain Loe said: "There are a number of small breweries in Sussex and they are struggling against the onslaught of booze from the Continent."

Lewes brewers and pub owners Harvey & Son attacked the rises. Bill Inman, marketing manager for the firm, said the higher prices would mean more closed pubs, damaged rural communities and higher unemployment.

Simon Clark, spokesman for smokers' rights group Forest, said: "Punishing smokers for their lifestyle is unacceptable in a free, civilised society. What next, a tax on obesity? It is an utterly malevolent and misguided policy."

High-tech businesses were buoyed by yesterday's news which introduced 100 per cent tax breaks for companies investing in information technology. Mr Brown also announced £250 million will be made available for any business investment in the South East and London.

Mike Herd, executive director of the Sussex Innovation Centre, said: "Lots of the points are geared to companies we are working with. There's a clear commitment from the Government for this type of centre. This will help people in Brighton achieve."

Mr Brown announced the weekly state pension would rise in April 2001 by £2 for a single person and £3 for couples. The minimum income guarantee for the poorest pensioners will go up for a single person aged over 80 from £82 to £90 and for couples from £127 to £137.

The pension allowance would rise to £5,790 with the savings limit for pensioners on income support doubling to £6,000. The winter fuel allowance will increase from £100 to £150 and the over 75s will not have to pay for their TV licence.

But Brighton and Hove Pensioners' Association criticised the Chancellor's decision not to link pensions with earnings. Member Tony Farsky said: "We are utterly disappointed that the Chancellor has not improved on the insulting 73p weekly increase which pensioners will receive from next month. We welcome the increase in the winter fuel payments but this is only another £1 a week. The budget falls short of what pensioners really need."

Health bosses welcomed Mr Brown's decision to raid his war chest to give the NHS a £2 billion boost from April with a commitment to increase spending by 6.1 per cent above inflation each year during the next four years and allowing the recruitment of 10,000 nurses.

Dr Ian Bogle, chairman of the British Medical Association, said: "We are delighted that the Government has responded so quickly to our call for a fundamental review of NHS funding."

Mr Brown announced an extra £1 billion for education in Britain. For schools in Sussex it means additional grants of £30,000 to £50,000 for secondaries and £3,000 to £9,000 for primaries. Special schools will each get £15,000. Extra money is also being pumped into primary schools for catch-up literacy and numeracy teaching for the weakest pupils.

A spokesman for the Sussex-based National Association of Head Teachers said: "Heads in the county will be delighted that the Chancellor has promised extra direct resources for school budgets. It is welcome recognition that the current funding system fails to deliver the money schools need to meet the Government's challenging standards agenda."

The AA welcomed a freeze on road tax and the 2p per litre rise on fuel, which is in line with inflation. John Dawson, policy director, said: "This is the first time drivers can take some heart from a Budget in more than seven years."

The Chancellor announced an extension to the New Deal initiative for the revival of communities. This gives additional incentives for lone parents with children over five to take up training or work opportunities.

Fred Netley, a pensioner, is press officer for the New Deal partnership in East Brighton, covering Whitehawk and Moulsecoomb. He said the Budget looked positive for pensioners and the community.

MPs, community and business leaders gave Mr Brown's words a mixed reception. Home Office Minister Lord Bassam, who lives in Brighton, said: "This is an excellent Budget for education and health."

The former Brighton and Hove Council leader said it was a Budget that would help unify the country and aid those who needed protection.

Hove Labour MP Ivor Caplin said: "This will make a fundamental difference to hospital services in Brighton and Hove. I'm sure that schools will welcome the direct extra finance which will enable them to buy books, equipment and other facilities."

Lewes Lib Dem MP Norman Baker said: "It was well delivered but disappointing. It was clear education is not the priority any more. He spent four times as much on tax cuts as education. Measures on the health service are welcome but they have come too late. It's a pittance for pensioners and very bad for the environment."

Arundel and South Downs Tory MP Howard Flight said: "It was a good performance but the least impressive of his four Budgets so far." He warned much of the extra funding for the NHS would be needed to meet staff pay rather than improving facilities.

Brighton Kemp Town Labour MP Des Turner said: "It's a Budget that is going to mean more jobs, better standard of living for more people."

Brighton Pavilion Labour MP David Lepper welcomed more help for pensioners and working families on low income. He also highlighted the tax breaks for small and medium size businesses. He said: "We have got a lot of small, high-tech companies growing in my constituency. For companies like that, the Budget is going to be a real boost."

Coun Ked Bodfish, Brighton and Hove's executive councillor for regeneration, said: "We wanted from the Chancellor a lot to stimulate business because that is badly needed to improve the local economy. More is needed to promote employment and measures which will help to achieve that are welcome."

Liberal Democrat group leader on Brighton and Hove Council Coun Paul Elgood, said: "Clearly tax cuts are more important to this Government than services."

Mark Spofforth, president of the South Eastern Society of Chartered Accountants, said many householders in the South East would be affected by the increase in stamp duty on the sales of houses over £250,000.

He said: "Lots of middle income people are probably going to be worse off. I think it will the very poor and pensioners who will be better off."

Sussex Enterprise gave the Budget a cautious welcome. However, director of economic research Mark Froud said: "Businesses will be concerned by the lack of any reference to how the Government might find an alternative way of slowing house price increases in the South East."

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.