Yorkshire Forward Chairman, Graham Hall, today called for the Chancellor to deliver a budget in favour of business and innovation in Yorkshire and Humber.

Having welcomed the recent quarter percent interest rate cut by the Bank of England, Mr Hall asked Gordon Brown to continue the drive for a successful enterprise climate, urging announcements on March 7 supporting manufacturers and encouraging business innovation, research and development.

Mr Hall said: "First, businesses in Yorkshire need greater tax breaks to invest in technology, research and development. The high exchange rate and the recent US downturn do not promote a climate for innovation and long term investment and businesses need more incentive to innovate.

"Second, the royalties on patents licensed in cluster-related geographical areas should be zero-rated for tax purposes. This approach has boosted long term investment in Ireland and the recent link-up by Boeing to Sheffield University shows the potential for us to build on our universities' core strengths.

"Although our universities spend £250 million a year on research, making us one of the top UK regions, we need to strengthen the participation of businesses in research and development activity."

He also called on the Chancellor to reduce the impact of the Climate Change Levy on the region's most hard-pressed manufacturers. "Yorkshire and Humber is already making one of the largest contributions to the UK's Kyoto climate change target, yet our businesses are being penalised by the key fiscal instrument being used to implement the target. This cannot be right."