Budget: Set top box maker welcomes clarity on corporation tax over four years

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The group's finance director Stuart Hall said: "The move to reduce corporation tax should help enable an enterprise-led recovery, which is great for businesses like Pace which have been leading the charge to recovery by continuing to grow in the downturn."

The Saltaire-based company said the clarity on corporation tax over the next four years would allow it to plan ahead.

"It's clear what is happening over the next four years rather than us having to guess," he said. "It allows us to invest more in the UK and we can put in place a long-term plan. The last couple of years we have not known what was coming."

Pace said some Budget decisions would support technology start-ups and make the UK more attractive to overseas investors.

"I hope this will be further backed up in the October spending review that will cover research and development in more detail." The group, which is now the world's biggest producer of set top boxes, said that over 97 per cent of everything it makes is for overseas markets. Any moves to strengthen sovereign debt and build a more stable economy will be good for export as it should create more confidence in sterling and reduce foreign exchange movement volatility.

"Our business is global and constant exchange rate fluctuations are challenging to manage when we are making business plans for the long term," said Mr Hall.

"I welcome the commitment to support regional capital projects and to cut red tape. This is what Vince Cable told Yorkshire business leaders when he and David Cameron visited us at Pace last month. Simplifying the rules and strengthening our region is all good for Pace."