A Budget about business is a welcome start Now, whether you agree or disagree with the myriad measures announced, the fact that the Chancellor focused on the people who create wealth (the private sector) rather than the people who spend it (the state) is to be welcomed. His performance on Wednesday was robust, confident even, and the Opposition's answers, as ever, unconvincing. If Mr Osborne were Britain's chief executive, he would certainly be good at producing an investor relations" presentation. There were four big things in this Budget and an awful lot of little things, a depressing disease of all governments - the dreaded initiative-itis. The state has long mistaken activity for action. The four big things (two of which may come back to haunt this Government) were the corporation tax cut to 20pc, a significant state guarantee for the mortgage market and therefore house building, a change in the mandate for the Bank of England and a reduction in National Insurance Contributions (NICs) for employers. The corporation tax cut is a positive signal, putting the UK at the top of the G20 tax rate league alongside Saudi Arabia, Russia and Turkey. Allied to the announcement in 2012 that the investment allowance ceiling for plant and machinery will remain at £250,000 for two years (up from £25,000) it is clear that this time, unlike 2011, the Government is not robbing Peter to pay Paul. Second, housing. Ever since Margaret Thatcher demonstrated that allowing people to buy their own homes was a policy that led to election victory, governments have tumbled over themselves to show that they are on the side of the mortgage holder. Mr Osborne didn't hold back. Taken together, the £3.5bn of support for people looking to buy new homes and a further £130bn of support for people with low levels of deposits will certainly kick start the housing industry. In fact, the danger is that the Chancellor has been too heavy on the tiller and he sets off the mother of all price bubbles. At 12.30pm, when the Chancellor stood up, house builder Redrow's share price, to take one random example, was just below 180p. By 3pm it was 193p. In an ultra-low interest rate environment, giving a guarantee to someone with a 5pc deposit might appear relatively low risk. But when interest rates rise, what happens if house prices suddenly collapse? A 5pc deposit buffer will soon be eroded and the state could find itself saddled with guarantees for an awful lot of negative equity. Governments are not noted for their expertise in the mortgage-backed securities market. Indeed, you could go further. It was President Bill Clinton who decided that "homes for all" was a legitimate government policy in the US. Lend, lend, lend was the message, whatever the ability of the borrower to support that lending. And we all know where that left America; a sugar-rush followed by an almighty bust. Significant UK government holdings in mortgage-granting banks, Royal Bank of Scotland and Lloyds, only increases the risk. Third is the Bank of England mandate. In short, relaxing the terms of engagement of the Monetary Policy Committee will mean higher inflation and lower interest rates for longer and therefore a transfer of wealth from savers to debtors. Again, this is dangerous territory and Mr Osborne could be accused of outsourcing responsibility for the economy to an unelected official from Fort Smith, Canada, called Mark Carney. Finally, the change on NICs for employers is a straight tax cut for which thanks should be given. Some 450,000 small businesses will now pay no National Insurance (a tax on employment) and unlike the previous National Insurance holiday, this appears to be an automatic rebate involving no paperwork. On the smaller measures there are also upsides on oil and gas exploration with reliefs for decommissioning, a shale gas exploration boost, a reduction on stamp duty on AIM shares to increase finance for growing businesses and the first move on removing firms from the ridiculous constraints and costs of the climate change levy, an energy tax. Two cheers for George Osborne - a man willing to put business at the heart of a Budget. Tinkering it may be and with some significant risks attached. Yes, he has done nothing fundamental to change the size of the state (still far too large to allow the private sector flourish) but he has sent one clear message. Without a vibrant private sector, growth will never return.