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There has been a cautious welcome to a series of government measures designed to boost growth, including a £40bn "credit easing" scheme, a £1bn business-finance partnership and an extra £1bn allocated to the Regional Growth Fund.

The credit easing programme will make £20bn available to small businesses over the next two years under a National Loan Guarantee Scheme, and an additional £1bn to mid-sized companies under a Business Finance Partnership. Companies with an annual turnover of less than £50m qualify for the first of the two schemes.

Chancellor George Osborne said an extra £1bn is also being allocated to the Regional Growth fund in England and almost £500m will be invested in high-tech industries.

In addition, the government confirmed plans to extend the Seed Enterprise Investment Scheme (SEIS). From April 2012, anyone investing up to £100,000 in a qualifying new start up business will be eligible for income tax relief of 50 per cent, regardless of the rate at which they pay tax.

“We welcome the announcement of 50 per cent income tax relief and a one-year capital gains holiday for those investing in start ups under the SEIS, but the government should have acted to encourage private lenders too," said Phil Orford, chief executive of the Forum of Private Business.

"Small firms need a range of funding options, and equity finance is certainly one of these, but lending at interest remains their preferred route by far.

"Combined with these tax breaks, the government's new credit easing scheme and an extended Enterprise Finance Guarantee (EFG), providing incentives for new lenders to compete with the high street banks would be more likely to boost competition in small business borrowing markets, driving up levels of service and bringing down costs. It is a shame this has not happened."

The government also announced a £500m housebuilding scheme in England as well as the mortgage indemnity scheme to help 100,000 people get onto the property ladder.

CBI director-general John Cridland added: "We are delighted that our campaign to gain support for medium-sized businesses has been heeded and we warmly welcome the Business Finance Partnership and measures to support exports.

"Having a strong mid-sized sector is vital for the long-term health of the economy. The Chancellor's announcements mark the first step in turning mid-sized firms into a new engine for growth, worth up to £20bn by 2020.

"The £1bn Business Finance Partnership is an innovative approach to providing mid-sized firms with a broader range of long-term finance options.

"Additional funds to provide targeted help for mid-sized firms to export could boost their ability to do business overseas."