Does George Osborne believe in manufacturing?

"We were surprised that ICT (information, communications and technology) and digital technology were not acknowledged as one of the key drivers of growth and urge the government to recognise that technology underpins all the growth sectors that were named in the budget," said Wills-Sandford.

This is the key point for high tech industries such as electronics.  

There may have been an increase in R&D tax credits for SMEs, commitments to help start-ups and SMEs and recognition of the need to develop a skilled and technically literate workforce.

But does the Chancellor truly believe that manufacturing and technology sectors can drive growth in the UK economy to balance the financial and retail sectors?

Yesterday's Budget only went part of the way to answering that question?

"The Chancellor gave a clear recognition that we are in an international race for investment and that manufacturing is at the heart of this," said Terry Scuoler, chief executive of EEF, the manufacturers' organisation.

Scuoler believes that for manufacturers, "despite the encouraging measures on investment, the significant rise in energy bills threatened by the Carbon Price Floor is unwelcome".

But the Budget did make positive noises about creating a stronger and more balanced economy with measures to boost investment in technology, research and development, and skills.

"The next stage of the Growth Review must seek to develop a more co-ordinated and cost effective approach to creating a low carbon economy," said Scuoler.

But specific evidence of the government's manufacturing credentials were harder to find.

"We welcome the focus on advanced manufacturing, which, when it comes to electronics, means low-volume high-mix, high-complexity manufacturing," said Wills-Sandford at Intellect.

One of the government's strategies for the high sector is to pile cash into scientific research centres rather than more commercially focused technology businesses.

"The increase in the tax credit for small companies' research & development, and the commitment to simplify the tax regime, will help make the UK a more attractive place to begin and grow an innovative business.

As John Brindley, Director of Membership and Business at the Institute of Physics points out: "There is a vital link between the health of our research base and the strength of our science-based businesses, and nowhere is this more evident than in the science parks situated across the UK".

The Government outlined a commitment to centres of scientific research, such as Harwell and Daresbury with a £100m investment fund.

There seems to be a knowledge gap between the government's view of what high tech sectors such as electronics create and the reality.

"There is still a general lack of understanding about electronics, where innovation comes from fast turn prototyping of new products as opposed to just processes," Wills-Sandford.

"The major difference between electronics and the rest of the advanced manufacturing is that innovation comes from outputs and not just processes. The government needs to understand that in more depth," said Wills-Sandford.

Was the Chancellor just paying lip-service to the skills agenda with more apprenticeships?

There is a feeling that more can be done to ensure the UK has a workforce with the necessary skills.

"We welcome the announcements of an additional 50,000 apprenticeships, £100m of new capital funding in 2011/12 for science and innovation campuses and expansion of the university technical colleges which we hope will deliver the workforce of the future," said Wills-Sandford.