"While some of the proposed support measures for smaller businesses will benefit Scotland, particularly in renewable technologies, there are no visible incentives for rural areas," said the FPB's Representative for Scotland, Jim Gorie. "There is nothing to support smaller primary food producers and manufacturers in the neglected agricultural sector, which would have lowered the reliance on imports."

Mr Gorie warned that increases in fuel, and the prospect of other vehicle taxes such as road charges, would harm smaller firms in Scotland's tourist industry, as well as rural businesses. He urged the Scottish Government to increase its support of smaller firms, in the face of a "tangle" of information relating to regulation, investment incentives and skills training.

"The Scottish Government should be encouraged to speed up the integration of Scottish Enterprise's Business Gateway services, with local authorities still lacking transparency in regard to planning and other local issues," said Mr Gorie. "Support services for the Scotch whisky industry will also be dismayed at the rise in spirit taxes."

Mr Darling said his Budget would continue to provide "stability and certainty" for businesses over the coming year and championed the UK's main rate of corporation tax as being the lowest in the G7. It will be cut from 30% to 28% in April. However, the lower rate paid by many smaller firms is set to rise to 22% by April 2009.

In addition, the Chancellor announced that his plans to remove Capital Gains Tax (CGT) taper relief would still go ahead in April. Although the 10% entrepreneurs' relief will apply for the first £1million of asset sales, the higher rate of 18% will apply thereafter. The FPB is also concerned that the removal of indexation relief, by which CGT calculations were adjusted favourably to take account of inflation, will cause yet more harm.

Measures to sweeten the blow will be negligible compared to the cumulative tax burden that smaller businesses are facing. Delaying the 2% hike in fuel duty until October falls short of the FPB's calls for it to be scrapped altogether, and the previous increase to be reversed.

Despite announcing minor tax incentives and share schemes, the Government still intends to clamp down on ‘income shifting', a long-standing tax break, used in particular by family-run firms, which was deemed lawful by the House of Lords last year. Reducing Capital Allowances for plant and machinery from 25% to 20%, by April, will place an additional burden on the cash flow of many smaller firms.

The FPB welcomes some measures outlined in the 2008 Budget, such as an initiative to enable more smaller firms to procure public contracts, pledging an additional £12.5 million to assist female entrepreneurs start businesses and extra Capital Allowances to help firms introduce more environmentally-friendly commercial vehicles. However, the Chancellor's statements do not back up his desire to "do more to support small and medium-sized enterprises, now and in the future."