Business leaders in Coventry and Warwickshire have given a broad welcome to the Chancellor's Budget as he announced initial support to help firms survive the Covid-19 crisis and then invest in an economy recovery.

Chancellor Rishi Sunak delivered his Budget in three parts, announcing further support measures for businesses and individuals before moving on to how he would fix the UK finances and concluding on how the Government intended to build the future economy.

The speech was watched by an online panel organised by the Coventry and Warwickshire Chamber of Commerce, supported by Prime Accountants Group.

An extension to furlough until September and new Restart Grants were announced prior to the Budget but were welcomed, while the Chancellor also revealed an extension on who qualified for support under the help for the self-employed. He also announced a new Government-backed Recovery Loan scheme.

There were further incentives on offer to take on apprentices and, also, for businesses to invest through a new 'super-deduction' that reduced tax by 130% of the cost over the next two years.

The Chancellor also revealed that the business rates holiday would continue until June and that VAT for hospitality firms would remain at 5% until September.

He did reveal, however, that corporation tax would rise to 25% in 2023.

There were also announcements around investments in skills, digital development and a new Levelling Up fund for regions to apply for.

Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, said: "The Chancellor has clearly heard the calls from our members in Coventry and Warwickshire and businesses up and down the country that more help was needed to get through the crisis and then to invest in the recovery and the future.

"It was very upbeat speech, considering the health and economic crisis we have all faced over the past 12 months – one designed to give businesses confidence that they can survive and then grow.

"As ever, some of the announcements had already emerged but we certainly welcome the extension to furlough, the new Restart Grants and many of those policies designed to help support cashflow for those still struggling.

"Investment from both the Government and businesses is going to play a huge role in getting our economy moving again once we start to open up so it was very welcome to hear the new 'super-deduction' on business investment and also plans for a levelling up fund.

"Of course, the rise in corporation tax will be highlighted and no business wants to pay more in taxation, but when you take it in the rounds with the support for firms struggling due to the crisis and the incentives to invest, it was almost inevitable.

"There will be a long-term issue around tackling Government debt but getting businesses and the economy growing again is absolutely vital.

"The devil is always in the detail when it comes to the Budget, but it appears the measures within it will play a key role recovery. That said, the roadmap out of Covid restrictions and getting the economy to open up once more is even more crucial."

Steve Harcourt, of Prime Accountants Group, said: "It was a very supportive Budget for businesses and individuals. Hopefully there will be enough in there to see us through getting back to full capacity.

"There were positive predictions of getting the economy back to pre-pandemic levels by mid-2022, which is welcome.

"There was positive news on taxation for business including being able to carry back £2 million losses for three years, which will help businesses from a cashflow point of view, as well as the super deduction to help drive investment."