Budget also outlines help to businesses, drivers, beer drinkers and the local house building industry.

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MEASURES to encourage people to buy new-build homes have been announced by Chancellor George Osborne.

Delivering what has been described as a ‘mixed budget’ the chancellor outlined the introduction of Government-backed loans for house buyers, providing they can find a five per cent deposit themselves.

Mr Osborne was forced to halve economic growth forecasts but delivered a budget aimed at ‘those who want to work and get on’.

In a 55 minute speech earlier today (Wednesday), he cut corporation tax to 20 per cent – the joint lowest in Europe – and froze petrol duty rises, scrapping an expected 1.89p rise.

He also cancelled alcohol duty rises and cut beer by 1p a pint.

From autumn 2015, tax credits of up to 20 per cent – or £1,200 – of childcare costs per child will be introduced to make it pay for people to return to work and cover the cost of childcare.

The chancellor also announced a move to raise the income tax threshold to £10,000 by April next year. There will also be a reduction in top rate of income tax, down from 50 per cent to 45 per cent.

Matthew Melksham, senior manager at the Bideford branch of Haines Watts accountants, said: “I see this as a mixed budget with growth being downgraded but with some ideas on how to try to get the local economy going.

“In North Devon we need more people with disposable income to help our retail sectors which have faced a tough few years, plus the additional shot in the arm for house building could help kick start our local economy.”