Gordon Brown revised his growth forecast

Mr Brown's prediction of continued economic growth this year of between 2% and 2.5%, albeit down from 2.5% to 3%, won a vote of confidence from Scottish Labour colleagues at Westminster.

However, he came under fire from the Scottish National Party which accused the chancellor of failing to acknowledge the true economic picture and failing pensioners in particular.

Labour MP Ann McKechin said: "Our very sound fiscal policies on inflation, on interest rates and employment mean we're going to face a situation where we can give continued and much greater investment in our public services and at the same time be able to look forward to continued growth in the years to come."

Angus Robertson: Pensioners losing out

That assertion was immediately dubbed "quite phenomenal" by Angus Robertson of the SNP, who also said Mr Brown was excluding thousands of pensioners under 80 from an increase in the winter fuel allowance.

He said: "The chancellor's just reviewed his growth forecasts. Growth is going down and of course we know in Scotland is less than half the UK level.

"In fact, we were in recession just over a year ago.

"We're in a very bad situation for our economy and quite apart from that I think a lot of pensioners in Scotland will be asking themselves why they are exempt from an increase in the winter fuel allowance."

John Thurso, of the Scottish Liberal Democrats, gave a cautious welcome to fuel duty increases in October but stopped at that.

'Curate's egg'

He said: "It's obviously welcome. I think the chancellor has realised that he was remarkably complacent last year with his extra taxation on the oil industry and has seen the damage it has done.

"We'll obviously have to examine the proposals in detail but it's welcome that he's recognised that he clearly made a mistake."

"It's a Budget that is a bit of curate's egg, odd little good bits but a bit rotten all over."

Peter Duncan, the Scottish Tories' only MP, said Labour's economic strategy was failing.

The chancellor has accepted that his estimates for economic growth were too high and he has reduced these to more in line with CBI's forecasts Iain MacMillan CBI Scotland

He said: "This is an economy in trouble and we've had the seventh Budget from Gordon Brown, it's more taxation and spending and there is no delivery.

"There are more promises, more excuses and more borrowing."

The Scottish Socialist Party accused the chancellor of "tinkering on the margins".

The party's Alan McCombes said Mr Brown had failed to address "the real issues of poverty and inequality in our society".

The Scottish Green Party claimed that the budget was "too grey".

Spokesman Mark Ballard said: "While Gordon Brown has made some minor Green concessions by cutting the duty on greener alternatives to petrol, he has done nothing on the big issues."

Economic growth

Iain MacMillan, director of CBI Scotland, said his members may give the Budget qualified approval.

He said: "The chancellor has accepted that his estimates for economic growth were too high and he has reduced these to more in line with CBI's forecasts.

"This means that there will be a bigger public sector deficit for the next few years.

Peter Duncan: Broken promises

"But, in line with what we asked for, this will be met by increased borrowing and not by further higher taxes on business or the consumer."

Mr McMillan also welcomed measures including tax freezes on duties, including Scotch whisky.

However, Gerry Dowds, of the Forum of Private Business, said: "He hasn't reduced national insurance or capital gains tax or the employers' liability insurance.

"He should have integrated national insurance and PAYE payments as employers have to do two different calculations. This is a red tape nightmare."