The verdict on the budget from ICAEW members is in – and it’s not good news for Chancellor John Healey.

The Chancellor set out to deliver a ‘steady-as-she-goes’ budget, designed to keep the markets calm. But for ICAEW Chartered Accountants, it did little to improve the UK’s growth prospects.

A survey of 634 members, conducted immediately after Healey’s budget speech, found that almost half (46%) had a negative view of the budget, with 43% having a neutral view. Just 11% had a positive view of the budget.

Again, only 11% expected that the budget would boost growth, with 41% expecting it to weaken growth. The majority – 46% – expected the budget would have little or no impact on growth.

Most respondents (46%) said they did not expect to take any direct action as a result of the budget. However, almost a quarter (24%) said they were more likely to reduce headcount, while 22% said they would increase prices and a fifth (20%) said they would reduce investment.

By contrast, just 1.1% plan to increase headcount, and 0.8% plan to reduce headcount. Those increasing investment were slightly higher, at 4.4%.

There were some specific measures that were more warmly received. For example, the new capital gains tax relief for founders of innovative companies was welcome news, with 47% considering it a positive move.

The increase in the small business rates relief threshold for the retail, hospitality and leisure sectors was also considered a win, with 46% having a positive view. The fuel duty freeze and extension of the 5p discount was seen as positive by 43% of respondents.

Alan Vallance, ICAEW Chief Executive, said: “These results suggest that many chartered accountants viewed this budget as a missed opportunity to tackle the long-standing barriers holding back the UK economy.”.

The impact of rising employment costs was not addressed at all, he added, which still weighs on recruitment, investment and expansion plans.

He continued: “Businesses have shown remarkable resilience in recent years, but these results suggest that many remain unconvinced that this budget will materially shift the dial on growth, confidence or competitiveness."