ON March 12, Alistair Darling will make his first budget announcement, the first time in ten years that the statement has not been delivered by Gordon Brown.

Whilst it may go down as a day in history for the chancellor, small to medium enterprises (SMEs) in the south east are not as thrilled.

Research from Alliance & Leicester Commercial Bank has shown that 75 per cent of the region's small businesses are either worried or apprehensive about the forthcoming budget announcement.

Small businesses already have an indication of what lies ahead with proposed changes to tax having been made following the March 2007 budget and the pre-budget statement made in October last year.

These include increases in corporation tax rates, legislation to prevent income splitting, changes to Capital Gains Tax including abolishing taper relief and increases in fuel duty.

However, despite warnings about possible tax changes, it is worrying that just 13 per cent of SMEs in the south east thoroughly understand what the proposed changes will mean for their business. Regional director for Alliance & Leicester Commercial Bank's London & South East Business Centres, Daryll Windsor, said: "With economic uncertainty, small businesses in the south east are starting to feel the pinch and the forthcoming budget is another concern. Our research shows just how concerned businesses are of the budget and it's worrying that so many don't truly understand how the changes will affect them."