Business leaders in Kent have welcomed the government's plan for an extension of free child care costs to one and two-year-olds, saying it will help get people back to work.

Chancellor Jeremy Hunt confirmed what had been heavily trailed when he set out the government’s blueprint to help the country’s economy recover in a budget set against the backdrop of a cost-of-living crisis and industrial unrest.

Child care costs have been increasing in recent years to a point where some have claimed that it is so prohibitive that it was not worth returning to work.

The government said parents on Universal Credit will now receive up to £951 for one child and £1,630 for two children per month which will now be paid upfront.

There was also good news on energy bills, with the announcement of an extension to the scheme to help households.

The Energy Price Guarantee scheme will continue for a further three months after April, when it was due to end. It is thought that declining energy costs have made the extension viable.

Mr Hunt said he recognised that families were still struggling with high bills.

"This measure will help save average families a further £160 on top of the energy support measures already announced," he told the Commons.

The chancellor also unveiled a £63m fund to keep public pools and leisure centres afloat.

In what he described as a 'Brexit Pubs Guarantee' he said duty on draft beer would be up to 11 pence lower than in supermarkets – which drew from cheers Conservative backbenchers.

There was mixed news for businesses with no overall change in the corporation tax -– while Kent has missed out in the bid to become one of the government’s new ‘investment zones’ with just 12 getting the green light.

There will, however, be a new £200m fund for regeneration projects while the amount spent on fixing potholes would rise from £500m to £700m.

"This measure will help save average families a further £160 on top of the energy support measures already announced"

On defence spending, the government will add a total of £11bn over the next five years and it would be nearly 2.25% of GDP by 2025.

On nuclear energy, he said he was launching "Great British Nuclear" aimed at bringing down the costs of producing nuclear power.

He also said there would be a competition for small modular reactors - and says the government will co-fund the technology if it is found to be viable. That could be good news for those campaigning to keep some form of nuclear energy production at Dungeness.

On pensions, he said that the lifetime allowance would be abolished.

On reforms to child care, he said too many mothers who took a career break became a career end.

He pledged that schools would all offer some kind of wrap around support by 2026.

Business leaders said the government’s extension to free child care costs was welcome.

Andrew Metcalf, vice-chairman of the Kent Invicta Chamber of Commerce, said: “The proportion of salary that can be spent on child care is eye-watering for some and restricts the ability of people to return to work. It is affecting many many families in Kent.The government needs to step in.”

He said extra investment in nurseries was needed to ensure demand for places could be met.

Mr Metcalf added the biggest challenge facing businesses in Kent was a shortage of skills, leaving companies facing difficulties recruiting the right people with the right skills.

"If we can get that right and and I think we can, we can make a real success of this but we do need government support."