Dr Peter Hughes, Chief Executive of Scottish Engineering welcomed a number of the initiatives spelled out in the Budget and said that if the Chancellor could deliver on these points then it would be to the benefit to the engineering manufacturing sector.

"In particular, I see the £2.5 billion package to help SMEs and the doubling of the investment allowance for small businesses as very worthwhile. I would also hope that a share of the £2billion green investment fund for green transport and offshore wind energy provision would see its way to help Scottish companies at the forefront of this sector. Also the £60million port development fund will be very welcome in areas where offshore energy is being produced.

"While I have been critical of the banking system recently, I am pleased that the Chancellor has announced that RBS and the Lloyds banking group are to release £94 billion in new business loans to help small businesses. Let's see if they deliver. The raising of the stamp duty threshold to £250,000 will also help to drive forward work within the construction industry.

"The future of the engineering industry depends on a continuing input of highly skilled engineering graduates so the £270 million fund for universities to help them with their science, technology, engineering and mathematics departments is very welcome.

"Finally, I am deeply envious of engineering companies in England who will experience a cut in business rates for one year and hope that our government in Holyrood will see fit to make a similar gesture."