"I am pleased that he has recognised that small companies have been innocent victims of the credit crunch and has insisted on an increase of 15% in the availability of credit for small firms. The proof of this will be evident through the delivery. We've heard before about help from banks for small businesses and it has yet to materialise.

"The 2% reduction in Corporation Tax in April instead of 1% which was expected is very welcome as is the extension of the business rate relief holiday for small companies for another year.

"For the future, the plan to impose a carbon price floor of £16 per ton for CO2 in 2013 may not help our competitiveness but giving a green investment bank access to £3bn of funds should ensure that the renewable sector continues to grow.

"The cost of transporting manufactured goods, which has increased as fuel costs have risen will benefit from the 1p per litre cut in fuel duty from 6pm this evening, from the delay in the 4p per litre rise due in April and the scrapping of the annual fuel duty escalator until 2015.

"All in all, this budget will benefit the manufacturing engineering industry."

For further information contact Colin McGill on 0141 221 3181 or 07976 224412 or visit the Scottish Engineering website at www.ScottishEngineering.org.uk