Scenes of liberation in Baghdad overshadowed the impact of Chancellor Gordon Brown's Budget and that was the way the government's financial strategy was met in the south.

Movements on international stock exchanges appeared much more aligned to television pictures from Baghdad than what was happening in Westminster.

In the south businesses sounded a cautious note and many observers believed the Chancellor's growth forecasts were extremely optimistic with many companies not expecting to see growth in excess of two per cent in the next year.

"A lot of what the Chancellor has said is, at first glance positive,'' said Iain Thom from law firm Eric Robinson. "It is easy to look at with a half-full glass and see that he is trying to help industry. He has started on the path to cutting red tape by his statement that he will cut some 40 redundant regulations.''

Mr Thom said the new provisions relating to VAT for small businesses must also be of assistance to many in that sector of industry.

"I hope his words translate into actions and that we can be justified in having confidence in his stated intention to help businesses,'' added Mr Thom.

Mr Brown was the first Chancellor since Labour's Hugh Gaitskell during the Korean War in 1951 to deliver a Budget with Britain engaged in military conflict.

See pages 24 - 27 of today's Daily Echo for more on the South's reaction to Gordon Brown's 2003 Budget.