The Chancellor cheered up cider producers in Kent by scrapping a 10p increase in cider duty proposed by the previous government.

Julian Barnes, managing director of Biddenden Vineyards, said the firm felt very lucky. "I'm very happy that it's come off," he said. Kent cider was made from apples grown in Kent and produced by local people. But the Vat increase, from 17.5 per cent to 20 per cent, which came on top of the duty, was less welcome.

However, he thought it was a reasonable budget. "We've got to accept that the country has got to be run more like an individual company. There will be some pain along the way but the country is no different to any individual company."

He had just come home from Greece and he was pleased that things were not as bad as they are there.

"Kent is a fantastic place to be doing business." He added: "Sales at the moment are very good."