Gordon Brown used the pre-Budget statement to announce that around 400,000 extra small businesses will now be eligible for the small firms' loans guarantee scheme, with the turnover limit raised to £3 million.

Forum Response: Federation of Small Businesses

Neil Hamper, chairman of the FSB's Taxation and Financial Affairs, said: "We had hoped for a first step in balancing out the tax regime as between sole traders and limited companies today but there was no mention of any moves in this area.

"We now predict that sole traders and partnerships will be driven into incorporation and we shall be campaigning on this issue immediately."

"We do however welcome the improvements to the small firms loan guarantee scheme to take in retailers and motor mechanics among other small businesses."

Forum Response: The Work Foundation

A spokesman for the Work Foundation said: "The chancellor focused substantially on enterprise and announced an extension to the small firms loan guarantee scheme. In practice, many businesses flounder because they are not able to access relatively small amounts of money to pay for professional business advice (for example from accountants or lawyers). This will be a way of increasing resources available to start up businesses.

"The small firms loan guarantee scheme is under-utilised. If the government wants to go along the route of a mass financial offering to entrepreneurs, it is critical that bank managers, advisers and small business support services are educated in its availability and use."

Forum Response: Local Government Association

Sir Jeremy Beecham, chair of the LGA, said: "The announcement that local authorities will in future be able to keep new business rate income resulting from the setting up of new businesses in their area gives councils a financial incentive to work with partners in industry and commerce locally to encourage the development of new businesses. We look forward to discussing this proposal further."

Forum Response: ACCA

Chas Roy-Chowdhury, head of taxation at ACCA, said: As with all Budget statements, the devil will be in the detail. The chancellor revealed very little new information in his statement.

"There were however some measures to welcome, including the extension of the small firms loan guarantee scheme to more business sectors. Given the significance of the service sectors to the UK economy, it would make sense to extend SFLGS to the retail, transport and catering sectors."

Patricia Hewitt, the trade and industry secretary, told ePolitix.com: "The Loan Guarantee Scheme is one of the government's success stories with over 82,000 loans guaranteed to the tune of £3 billion in total.

"The changes will mean even more small businesses can benefit from the scheme, making a real difference to those that find it difficult to obtain bank finance. The move will especially help businesses within ethnic minority groups, who tend to operate many business in the new participating sectors.

"And if we're to boost the enterprise agenda, we have to encourage more young people to consider the option of entrepreneurship as a career. The extra money to ensure that young people get experience of enterprise is a key part of that effort."