OXFORDSHIRE business leaders yesterday criticised Alistair Darling’s budget as a political manoeuvre that could lead to a brain drain from the county.

The Chancellor of the Exchequer announced a range of price hikes on alcohol and tobacco and pledged to hit the rich with a five per cent stamp duty fee when they sell houses worth more than £1m.

There was a one per cent rise in tax on tobacco, while duty on beer, wine and spirits went up by two per cent but rose by 10 per cent on cider as Mr Darling looked to cash in on the popularity of the drink and reduce binge drinking.

Mr Darling also announced a £100m fund for repairing roads damaged by winter weather.

Having already pledged to charge 50p in the pound on those earning £150,000 or more, which comes into force next month, Mr Darling revealed there will also be major cuts in tax relief on the pensions of top earners.

That move led one financial expert to predict many wealthy people will pack up and leave the UK.

Chris Mundy, tax partner at Botley-based accountancy firm Grant Thornton, said: “More of the very rich will be leaving the country.

“We have already seen a trend and that is worrying because it could lead to a brain drain as some of these people are successful business owners who run companies that are important to Oxfordshire.”

The biggest budget giveaway was raising the rate of stamp duty relief on properties worth up to £250,000, but this will be available only to first-time buyers.

The guarantee of a job or training for 18-24-year-olds out of work for six months will be extended, while pensioners will benefit from another year of a higher rate winter fuel allowance.

Responding to the rises in alcohol duty, David Doughty, chief executive of the Oxfordshire Economic Partnership, said: “This will have a detrimental effect on pubs in rural communities.”

Mr Doughty is concerned Mr Darling declined to alter his plans to increase National Insurance contributions (NICs) by one per cent from April 2011.

He added: “NICs are another tax on businesses and affect companies across the board.”

But he welcomed the extra £270m to help fund 20,000 more university places, particularly in science, technology and maths from September as it will benefit Oxford University and Oxford Brookes University.

Another boost for the county came with the announcement of a £35m capital fund to support innovation and start-up companies while entrepreneurs will also benefit from an extension of relief on capital gains tax.

Mr Mundy said: “It means entrepreneurs will be keen to invest in small businesses as the risk will be rewarded by lower taxation.”

Ian Wenman, chairman of the Oxfordshire Institute of Directors, said: “This was a political budget when a business one was needed.

“There was tough language used but not enough detail about future cuts – we haven’t yet seen the hit on our public sector employees.”

  • THE FAMILY

    Gill Jaggers, of Cricket Road, lives with husband Salvatore Marinari and children Maria Marinari, 14, and Leo Marinari, 12.

Ms Jaggers, head of marketing at the Pegasus Theatre, said: “Barely anything in this budget will affect me or my family. We barely use our cars and I don’t smoke and drink far less than I did when I was younger.

“My children are also too old to benefit from the extra child tax credits.

“The one bright spot is the increase in the ISA limit. Like many people I have been finding it incredibly hard to save so anything that helps that is a bonus.”

  • THE PENSIONER

    Pensioners’ rights champion Bill Jupp, 78, of Arlington Drive, Old Marston, had mixed views about the Chancellor’s budget.

He said: “For the first time ever I do believe the Government has taken control of some issues and led from the front.

“However, I still feel the bankers have not been punished enough for leading us into this economic crisis.”

Mr Jupp added: “Only recently we were still paying off the debts we accrued during the second-worst financial crisis of my lifetime, which happened just after World War Two.

“That is why I feel what this Labour Government has done is unforgivable.

“I’m not a big fan of many politicians but we will still be paying off these massive debts in many years.”