Terry Scuoler, chief executive of EEF, said: "The Chancellor has served up a number of aces in supporting business investment allowances, plans to cut employer national insurance contributions, phased reductions in corporation tax and funding for road improvements. His commitment to defence funding is welcome and will encourage investment in key technologies. I also support the principle of establishing a new national living wage.
"However he has double faulted on the training levy which manufacturers will be sceptical about. Until we see the detail it is not clear how this will help deliver the high quality apprenticeships we urgently need. Employers must be in the driving seat on this reform to ensure we get the right quality of apprenticeships and training. There will be no tolerance for recreating the failed skills bureaucracy of the past."
He added: "The budget clearly recognises the need to prioritise measures which lay long-term foundations for sustainable growth and improved productivity. Industry will welcome the fact this has remained the focus of attention despite the tough choices which are necessary to balance the books."
On proposals for a training levy, Paul Raynes, the EEF's director of policy, said: "Manufacturers will be sceptical about a training levy, especially as their financial investment in high quality apprenticeships already far outweighs the public subsidy available to them. The Chancellor has given welcome reassurance that the levy would only apply to large firms and will be directly controlled by employers.
"We look forward to discussing with the government the best way to ensure every penny raised would be spent on valuable training that employers actually need and want. There will be no tolerance among businesses for re-creating the failed and costly skills bureaucracy of the past."
Lee Hopley, chief economist at EEF, focused on business taxation. She said: "The Chancellor put predictability and stability at the centre of some welcome tax measures for industry. Confirmation that the investment allowance will proceed on a permanent basis at £200,000 ends the seven year rollercoaster ride this part of the tax system has been on. It will give small businesses, in particular, the certainty they need about how investments in productivity enhancing equipment will be treated for tax purposes."
She added: "Businesses large and small will also welcome the government giving forward visibility of the phasing of lower Corporation Tax rate as public finances allow. Importantly, a new corporate tax roadmap promised by April 2016 sees the Chancellor maintaining good form on giving business visibility about future priorities for reform."
On road funding, Raynes said: "Roads are the backbone of the economy and the Chancellor is right to recreate the principle that road tax pays for just what it says it does. However, it would make most sense to allocate protected money to repairing the 97% of the network that is in the worst condition, rather than to the motorways that least need maintaining and will always get the most attention."
On the review of energy taxation and levies, he added: "Industry will welcome a review of energy taxation and levies. Fifteen years of layering and tinkering with policy has left us with a vast patchwork of expensive, inefficient and incoherent policy drivers for decarbonisation. We urgently need to revisit the policy landscape to reduce costs, improve the business environment and better deliver on our policy objective of reducing emissions."
Tim Thomas, head of employment policy at EEF, was wary about changes to pensions tax relief. He said: "Pensions need long term stability in order to provide sustainable incomes in retirement and tax relief is an integral element in incentivising pension saving. Any future change must not risk a reduction in pension contributions either by workers or from their employers."
Brian Holliday, managing director of Siemens UK & Ireland, said: "As recognised by the Chancellor, productivity is key to economic growth and prosperity, and we are looking forward to hearing more about the Government's productivity plan on Friday. Investment in technology is key to boosting productivity in manufacturing for companies large and small. We welcome the certainty created by setting the annual investment allowance at £200,000 which will help stimulate plant and equipment investment. We remain less clear however, about R&D and science spending which is just as vital for long term growth.
"I welcome further devolution in Manchester and the North West and support the £30m funding announcement for Transport for the North with its integration intent and Oyster payment system. Electrification of the Manchester Leeds line remains a local priority and should remain a local political priority too."
Paul Townson, tax partner at BDO LLP, said: "There has been recent evidence that the UK economy is swinging back to an overreliance on the service sector which is disappointing given the recent political attention on rebalancing the economy towards manufacturing. There were hopes before the Budget for more support for the manufacturing sector, particularly those innovative and high-end manufacturers driving the UK's economic recovery.
"The Chancellor's Budget provided some certainty for manufacturers to invest by setting the Annual Investment Allowance at £200,000 permanently, rather than the planned £25,000. Furthermore, announcements in respect of the apprenticeship levy should help replace an ageing workforce and provide the skilled labour of the future but large employers will be expected to foot the bill through a levy."
He added: "The impact of the New National Living Wage may have a disproportionate impact on labour intensive manufacturing businesses that employ lower paid/part time staff. These will experience higher employment costs which they may struggle to pass on to their customers if faced by overseas competition.
"Unfortunately the Budget contained no new tax breaks to encourage much needed innovation – but the R&D tax credit and patent box regimes remain. The Government must continue to do everything it can to build momentum by encouraging investment, employment and foreign trade in the sector."