WHEN Gordon Brown unveils his Budget this afternoon, businesses across the region will be anxious to see what measures he produces to aid an economic recovery.

Many believe the Chancellor must be bold in order to create a high-value economy that encourages entrepreneurship and raises productivity.

Financial analyst Justin Urquhart Stewart, principal speaker at next month's County Durham Business Show, believes this will be the first open Budget for many years.

He said: "Mr Brown will be taking money from the front pocket, not the back one. He will avoid putting more duty on fuel, following the protests last year, but there may be rationalisation of car tax."

He added: "There will probably be some changes in National Insurance, with higher contributions, but most people are in favour of that as long as the money is put to good use.

Meanwhile, the North-East Chamber of Commerce is hoping for measures to address the region's economic needs.

Its head of policy, Rachel Spence, said: "For the region's economy to develop and diversify, we need the Government to encourage investment and innovation, and put structures in place to raise basic levels of work-based skills and productivity.

"Until we are given the opportunity to demonstrate a consistent level of achievement and growth throughout our industries, we will continue to fall behind our European competitors."

Meanwhile, the Federation of Small Businesses (FSB), the UK's largest lobby organisation, representing the self-employed and owners of small businesses, has produced its own 14-page Budget submission.

Peter Troy, FSB Darlington branch chairman, outlined the key submissions as increasing personal allowances to £8,500 and making them transferable within a household; reducing VAT from 17.5 per cent to five per cent on hotel and holiday accommodation, and reducing UK fuel taxes to EU levels.

Development agency Yorkshire Forward is calling on the Chancellor to "lay the foundations for future prosperity".

Chairman Graham Hall said: "It is important that the Budget balances calls for additional public expenditure with the profound need to assist business, especially small to medium-sized businesses and manufacturing.

"Moreover, we need a Budget that utilises potential to better tie up public investment and business benefit."

The Engineering Employers Federation (EEF) in the North-East called for a Budget which would boost skills and science.

The organisation represents 10,000 manufacturing companies and almost two million employees.

EEF Northern director Alan Hall, said: "Investment in our science and engineering base is the best way to help secure our place on the global economic chess board of the future.

"We need to make this investment now and the Government could aid this process by taking its own stake alongside that of industry and the scientific community."

Meanwhile, Paul Nowak, of the Northern TUC, called for an extra £45m in the North-East to tackle skills shortages.

He said: "We need smart support to give us a high wage, high-tech manufacturing sector that will trailblaze "Made in Britain" around the globe.