Returning the government books to surplus in 2014/15 gives business a lot of confidence, said Kim Campbell, chief executive of the Employers and Manufacturers Association.

“This budget is a good one for keeping the emphasis on financial stability while helping the economy edge forward,” he said.

“Three per cent GDP growth with inflation about one per cent is a meaningful achievement.

“The Minister of Finance is to be congratulated.

“Employers will be delighted with the news that ACC levies are to come down.

“The intense focus being brought to bear on making housing more available and more affordable cannot come soon enough.

“The extra investment going into skills and employment carry the right messages.

“Though the increased investment in research and science is pleasing will still not be enough to bring us up to OECD measures.

“On the downside there are no initiatives to spur on development in the regions, and only indirect acknowledgement of the headwinds our exporters have been facing.

“Nevertheless we are pleased the Reserve Bank will enact as required its full range of macro prudential tools.”