NORTHWICH is to benefit from a £6.5 million cash injection following last week's Budget, it has been claimed.

Accountancy firms Kay Chartered Accountants and Bulcock and Co, both based in the town centre, have predicted the local economy and businesses will benefit from Chancellor Gordon Brown's statement to the House of Commons on Wednesday.

Spokesman Laurence Burt, said: "According to our first estimates, Gordon Brown was able to pump more than £3 billion of new money into the national economy, and that should translate into an injection of £6.5 million into the Northwich economy - which we certainly welcome."

Mr Brown's plans to make a 20 pence per litre reduction on the cost of biodiesel, have also been welcomed by Northwich company Ebony Solutions, which invented e-diesel as an environmentally friendly alternative to diesel made from vegetable oil.

Owner Stephen Whittaker said the announcement meant the vegetable fuel would finally be cheaper to run than regular diesel.

He added: "We are delighted that the Government has given e-diesel the commercial green light through reduction, even if it's not until 2002."

But while many local businesses have welcomed several of the Chancellor's proposals, including changes in VAT and corporation tax for small and medium-sized businesses, the Budget has received criticism from Warrington Chamber of Commerce and Industry, which covers the Vale Royal area.

Chief executive, Colin Daniels, said: "The overall impact of this Budget is again to increase the burden of tax administration for business."