Terry Sweeney, of schools computer company RM, which employs 1,000 people at Milton Park, near Didcot, said: "I'm please that the Government is committed to maintaining spending on schools and colleges."

He said the company was still examining the detail, but was encouraged by the announcement of a four per cent increase in school spending in the current year.

"The Chancellor could have chosen to do something different, but we are encouraged that he didn't," said Mr Sweeney.

The company, which does 90 per cent of its business with the public sector, has continued to recruit throughout the economic downturn, though at a lower level than usual.

Dr Clive Dix, former head of Oxford company PowderMed and now chairman of the Bio Industry Association, also welcomed the £750m Strategic Investment Fund.

He said: “The small and medium sized companies that make up the bioscience sector in the UK have been hit hard by the current financial crisis.

“We have highlighted the need for a high-tech investment fund. The BIA will be reviewing the fund detail, including the mechanism and the amount accessible to bioscience, to ensure companies in our sector are swiftly able to benefit. It is essential that the fund is now implemented rapidly.”

He said biotech companies were also interested in plans to explore the tax treatment of Intellectual Property to enhance the competitiveness of the UK.

Dr Phillip Leo, of Oxford Innovation, which manages seven Innovation Centres in Oxfordshire, welcomed the support for innovative companies in the 'sectors of the future' – advanced manufacturing, low-carbon economies and new media.

The £750m Strategic Investment Fund for emerging technologies was also good news, he said, adding: "To have real impact, as a national programme, it may need to be much larger."

He also pinpointed the £525m support for offshore power generation and £435m to encourage carbon reduction.

“These measures could really assist the innovative, technology-based and potentially global businesses which are crucial to the future growth of the UK economy.

“And the doubling of the capital allowance for plant and machinery to 40 per cent provides a good boost for all firms.”

Spencer Hickson, who runs the Oxford-based firm Findlay Chauffeur Service, was not impressed by the threat of a fuel duty rise in September.

He said: “It is not going to make my life any easier as it will make our cost base higher and revenues lower. But I would not have expected any less.”

Meanwhile, Mini spokesman Graham Biggs gave a cautious welcome to the news that the Government will offer a £2,000 incentive for drivers to trade in their old cars for new models until March 2010.

He said: “I am sure we will participate in the scheme — we welcome anything that will bring people into the showrooms.

“We would like to have seen additional measures that give people incentives to buy cars with low carbon dioxide emissions.”

Pupinder Singh-Ghatora, owner of the Woodlands Pharmacy in Botley Road, Oxford, said: “There does not seem to be much in it for small businesses which is disappointing.

“I would have liked to have seen the chancellor offering small businesses some tax relief and the fuel duty will also hit us in the pocket as we have a delivery service.”

Iain Nicholson, of Chamber of Commerce, the Oxfordshire Towns Chambers Network, said: “As usual with recent budgets, we need to see the small print. He said there would be help for banking, house building and training and skills. On a local level we would like to see a business rate holiday; an automatic rate relief for eligible businesses — rather than making business people apply for the relief;a fund for local councils to match parking charges; and money to kick start building work at the Abingdon and Witney College.

“Well have to see if the measures help on these specifics.”

Accountant David Wilsdon, who runs Oxford company Green Accountancy, said: “The chancellor has introduced a Carbon Budget which sets a target to reduce Britain’s carbon emmissions by 34 per cent by 2020.

“That is a step in the right direction but its not enough when you think that in the UK we produce ten tonnes of carbon a year, in China the figure is four tonnes, and in India one tonne.

“As for the car scrappage scheme, its not green at all. It creates more not less carbon to scrap a car and out a new one on the road.”