As budget statements go, this was a tame one for small business. Forecasts of improved growth for everyone during the coming year don't necessarily ring true after previous predictions had to be lowered in the same speech. Just how much help there is for the small trader is a matter for debate.

For example, the scope for provision of workplace childcare sounds a good idea in principle, but in practice it could end up looking glib. How many small businesses have the space for a cr¿che on their premises, or the inclination to take on all the insurances, staff checks and child safety adaptations they'd need?

One way around this would be to find or establish a nursery nearby. Which is fine if employees with children work nearby and will reliably be around to pick them up, but supposing they're on the road most of the time, or they live an hour or so away? Dragging a screaming child across town on public transport isn't fun.

Some sort of tax break for working parents paying for and selecting their own childcare, near where they live rather than where they work, would appear preferable.

Childcare is arguably a young person's interest, as is training. At least, training is for the young if you're in this current Government. The apprenticeship task force is to be welcomed but it will not appeal to the forty- and fifty-somethings who may well be unemployed and is finding difficulty in getting back to work. And employers often don't mind hiring someone with a bit of experience; it is to be hoped that the extra cash for local learning and skills council areas will help bring those potential employees up to speed on skills they may need.

Corporation tax had already shrunk, although anyone listening out for any cuts on red tape to free up time as well as money would have been disappointed. Tightening of the VAT rules was to be expected - if productivity is shrinking then the Government needs to make the best of revenues that are already owed.

Unfortunately the rules on VAT are due to change in the middle of 2003 under a European directive to take account of software, music and other intangible goods sold electronically. In theory this will involve everyone charging the sales tax that applies in whichever country they sell to; if you trade internationally this could become a nightmare.

Thirty States in the US are trialing an automated system from software company Taxware that calculates sales tax and sends it straight to their equivalent of HM C&E at the point of payment so there is never a query or audit; HM C&E is understood to be watching the experiment.

There are also points in the pre-budget report that should give small traders nothing but relief. Local authorities will now be incentivised to encourage start-up businesses in their area. £75 million is to be spent on getting business education into schools and colleges, and in 2000 high unemployment areas there will be no stamp duty on commercial property transactions. Local authorities will have scope to relax the more stringent planning permission requirements - which will either be excellent or a bit of a Pandora's box.

Much of the rest is window dressing. Urging everyone to be moderate in pay settlements is fine but it's a request, not a proposal with any teeth. And as has been said elsewhere, the success of the current financial plan is predicated completely on a sustained global upturn over the next 24 months. One can always hope, but the portents have yet to make themselves clear.

Links -- TARGET="_new">The Full Pre-budget report speech

-- Full analysis of pre-budget report

-- HM Treasury