The impact of Chancellor George Osborne's much vaunted cut in corporation tax will be negligible in Hampshire, leaving more than 99% of businesses in the county no better off.

That's the warning from business advisors HWB, one of the region's leading independent accountants, who say of Hampshire's roster of over 62,000 businesses, just 429 will save anything in the Treasury's so-called Budget giveaway.

The Chancellor announced a further 1p cut in the main rate of corporation tax in his budget on March 23, taking it to 23% by 2014. But despite the flurry of positive headlines the move generated, the cut mainly benefits companies that post profits of £1.5m and above.

Just 7 in every 1,000 Hampshire companies will be in a line for a reduction in their tax bill as a result of the corporation tax cut.

Tracy Jenkins, tax director for HWB, said: "For the vast majority of businesses in Hampshire's hard-pressed SME sector, Mr Osborne's tax cut was just an empty gesture.

"While there were some business-friendly measures announced in his speech, this is just for the larger corporates. We would have liked to see the small profits rate of corporation tax cut too.

"In 1997 the UK had the tenth lowest corporation tax rates in the 27 present EU states. By 2010, it had fallen to 20^th. We still compare unfavourably with some of our neighbouring countries - Ireland has a 12.5% rate, which it has clung on to despite the bailout.

"We welcome any moves from the Government to help businesses in these tough economic times but SMEs are the lifeblood of our economy and it's there that the help should be directed."

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