Close Brothers Asset Management has said today’s Budget represented a missed opportunity to improve the UK economy.

Nancy Curtin, chief investment officer of Close Brothers Asset Management, said: “This year’s Budget was one of the most politically charged yet for the Chancellor. The shadow of the Brexit referendum loomed large, meaning Osborne needed to emphasise the solidity of the UK economy. But there was also a clear need to acknowledge how the UK and its deficit reduction has been affected by slowing global growth. This balancing act put the brakes on significant change.

“In the end, what we saw was more tinkering around the edges from the Chancellor to get within touching distance of his targets, rather than wholesale fiscal reform. Further tax rises, alongside more spending cuts, allowed more flexibility on the annual personal allowance and a higher rate tax threshold.

“Ultimately, the Budget proved a missed opportunity to bring the UK’s economy back to the boil. In a world of slowing growth, more austerity is no longer the way to balance the books. This needs to be achieved by growth – and given the scepticism over the efficacy of monetary policy changes, a change in fiscal policy is paramount. Osborne would do well to abandon his deficit reduction time limit altogether, and focus on large-scale investment and tax-cuts to sustain a long-term recovery.”