BUSINESSES in the south have little to cheer about today after reflecting on a predictable and uninspiring pre-Budget report from Chancellor Gordon Brown.

Nick Caiger from KPMG in Southampton said it was worrying that the chancellor had not come up with any accurate forecasts.

Mr Brown said growth in the UK this year would be just 1.6 per cent against a forecast of 2 per cent to 2.5 per cent at the time of the Budget.

This is just one of the factors Mr Caiger defines as worrying to business. He explained: "If the challenge is growth then the report does not inspire the confidence for this to be achieved."

Mr Caiger, pictured right, said businesses in the south are suffering one of their worst periods for some years - investment is down and confidence is low.

This contrasts with climbing house prices and high consumer spending which is an unusual combination that cannot last and could lead to future economic problems.

Mr Caiger also said companies in the south were facing increased tax burdens, more red tape and little to inspire them for the future.

"The employers' liability tax is a real issue at the moment and although the Chancellor signalled a review of this tax it is not going to come soon enough for who are trading illegally because they cannot afford the spiralling premiums and this will lead to company failures."

An increase in landfill tax will also takes its toll on businesses in the south, particularly those in the construction sector, and all companies will have to bear the brunt of new anti-avoidance legislation.

"Overall there was no optimism for the south's business in the speech although moves to improve the financial position of pensioners have to be welcomed," said Mr Caiger.

"The brightest thing was the future abolition of bingo tax!"