Despite the precarious state of the public finances following the financial crisis the Budget included a number of investment measures designed to build skills and fund investment in technology and engineering.
The Chancellaor announced a number of measures intended to support small companies and manufacturers as part of a plan to drive economic growth outside of the financial and services sector.
SMEs will see a cut in the business rate tax for 12 months.
There was a £35m university enterprise capital fund for spin-outs
In the area of skills the Chancellor said he would make available a £270m fund for 20,000 university places mainly in science, technology, engineering and maths subjects, starting in September 2010.
“Cost will be repaid many times over in the future in new jobs,” said the Chancellor.
The Chancellor announced various tax breaks for capital investment and a doubling of the relief from capital gains tax.
"We have world-class engineering and manufacturing, but competitors are not standing still, we can't take growth for granted."
The Chancellor said he was a believer in the importance of free market competition but he said that “Government has crucial role in building these strengths"
“Access to finance is vital for SMEs,” said the Chancellor.
Chancellor said he would ensure that RBS and Lloyds make £94bn of new business loans available over the next 12 months. "Almost 50% of that will go to SMEs," said the Chancellor.
According to the Chancellor, RBS & Lloyds have made £38bn available for business loans in last year.
There were various measures which could benefit engineering and manufacturing industries.
In the area of sustainable energy, he recognised a UK strength in off-shore power generation and the Chancellor said there would be £60m available for ports to host off-shore wind turbines.
The Chancellor said he wanted to provide help for business industry to help it compete in global markets
Highlighted UK strengths in electric vehicle design and manufacture such as the Nissan announcement last week.