CHANCELLOR Alistair Darling's budget received a mixed reception in Malvern.

The two per cent increase in alcohol tax was denounced by Khamala Baylis, landlady of the Prince of Wales in Newtown Road.

She said: "It's very disappointing because there's been a big campaign to axe the tax. He seems to be helping every other industry but ours. It's the third increase in the last eight months. At a time when people have got limited incomes to spend, it's ridiculous."

And estate agent Mark Ball was equally unimpressed with the chancellor's steps to help the housing market, which included extending the stamp duty holiday for houses worth up to £175,000 until the end of the year.

He said: "The stamp duty holiday is not really good enough. It should have been for homes up to £250,000 if he wanted to move the market. He announced an extra £80 million for shared equity mortages, but the problem with that is that nobody is taking it up."

Steps to help pensioners, which included a 2.5 per cent pension increase, the maintenance of higher winter fuel allowance and the raising of pension credits were all good news to George Waugh of Age Concern.

But he added: "This is all positive, but it's not enough. 2.5 per cent of £97 a week doesn't add up to a great deal." He said the chancellor should look at the anomaly of pensioners who work, get taxed on their earnings and also see their tax credits reduced.

However, Steve Jones of Brooklyn Motors welcomed the £2,000 bonus for scrapping old cars when buying a new one. He said: "We have to clarify the details, but generally we think it's absolutely a good idea, and it gets the old polluters off the road as well. We've already had several inquiries this morning specifically mentioning the scheme."