"Downgraded forecasts make it all the more vital that the Chancellor implements a credible plan for stimulating economic growth which helps retail in keeping inflation down and generating jobs, especially for young people.

"The Chancellor has addressed a number of the concerns we raised with him. His measures should provide some help to the hardest-hit families and may go some way to reversing the trend of falling consumer spending, but the challenge for the next twelve months will be to rebuild consumer confidence and stimulate private sector investment.

"A number of these proposals have the potential to help households and businesses but may not go far enough, particularly if the eurozone crisis deepens."

Fuel Duty

"Imposing no rise in January is welcome help for hard-pressed customers and businesses already suffering big increases in many of their costs. This should help confidence. But the Chancellor must continue to be flexible. If oil prices remain high he should stand ready to drop entirely the increase he is postponing until August."

Business Rates

"Despite the option to postpone part of next year's rise, businesses are still faced with the prospect of big increases in rates costs. The option to postpone 60 per cent of April's increase will be a modest help but the bills will still have to be paid in the end. Offering a delay stops well short of implementing a significantly lower increase.

"The Chancellor should have taken the opportunity to switch to a lower CPI-based rise, as he has done for pensions and benefits, and the deferral scheme needs to be simple and workable unlike the last time this was tried."

Small Business Rate Relief