Commenting on the Chancellor's Budget statement Dr John Philpott, Chief Economist, Chartered Institute of Personnel and Development (CIPD), said:

"While a hit on Britain's drinkers is the most noteworthy feature of Chancellor Darling's first Budget his message on the overall economic outlook is less sober."

"If Mr Darling is to be believed, the UK is well placed to weather this year's global economic storm and set to sail into calmer waters from 2009 onward. Times will be tougher than of late - and worse than expected last autumn - but still good by current international standards and in comparison with previous tough times."

"The Chancellor had little scope to do much in this year's Budget and didn't do too much to disguise his limited room for manoeuvre. The Budget is broadly neutral - mildly expansionary in 2008-9 with a tiny give away clawed back in the following two financial years. Mr Darling is offering what amounts to small change to business - though the business community in general will be happier with the Chancellor this time around than they were with his pre-Budget report. There will, however, be cries of anguish from the drinks industry and the hospitality sector. With real incomes already being squeezed and consumers cutting back on spending it won't just be the patrons of bars and restaurants who are crying over their drinks tonight."

"Although the Budget is broadly neutral it is redistributive, with poor families with children and pensioners the main winners - especially those who are not too partial to alcohol and cigarettes."

Employers will welcome breathing space, and additional resources for skills.

Overall, the CIPD welcomes the Chancellor's low key budget statement, which contrasts with the wealth of Government initiatives affecting employers in recent years.