Businessman Mr Ian Martin was hoping for a cautious budget and he believes the Minister played a steady hand. "Nothing over-radical and nothing under-radical which is good from a business point of view, at least," he said.

"There has been no major changes, and that's very helpful in the current economic climate. Obviously the main issue is taking minimum wage earners out of the tax net, and I think that's a great incentive for employment and it will also help employers.

"In fact I would have liked to see a greater increase. In a year's time any wage increase will bring those low earners back into the net, so I think a double helping might have been better.

"Also there are a lot of people in the 42 per cent band who shouldn't be there. The average working couple will still be at the high rate when perhaps they shouldn't be."

One item on Mr Martin's wish list was for VAT rates to be brought into line with Britain and Europe and he was very disappointed to see no change in this area. Mr Martin owns hygiene product manufacturers Martin Services.

The budgetary targets for economic growth (around 5 per cent) announced by Minister Cowen are too optimistic according to Mr Martin, as is the projected price inflation figure (2.5 per cent).

"The Minister mentioned how no one could have foreseen the price of a barrel of oil a year ago. I see the effects of that increase every day from the price of plastic bags to the cost of our distributors driving around the city and it's only going to get higher."