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   By Jane Croft, Andrew Jack and Maija Palmer Financial services, the pharmaceutical industry and the technology sector were among prominent winners from the chancellor's corporation tax cut.HSBC, the UK's largest bank, which has entertained the possibility of quitting the country, has welcomed the move.

Stephen Green, chairman of HSBC, said: "We continue to see London as the crossroads of the world and the premier international financial services centre.The news on corporation tax is a very welcome boost for business and one which serves to further enhance London's competitiveness." The British Bankers Association had been at the forefront of the agitators for the old headline corporation tax rate of 30 per cent to be reduced before this week's Budget.It argued in its Budget submission that between 1996 and 2004, 11 out of 30 Organisation for Economic Co-operation and Development countries cut their tax burden, including every Group of Seven member other than the UK.

Yesterday Angela Knight, chief executive designate of the British Bankers Association, struck a note of caution.She said: "At this point we are pleased the chancellor has responded to concerns about headline corporation tax rate, but we still need to study the numbers and need to see what is in the finance bill." However experts pointed out yesterday it was likely to be investment banks rather than retail banks which would benefit most.Banks with large branch networks would potentially benefit less as the corporation tax cut has been accompanied by lower capital allowances which would hit those banks with large branch networks with fixtures and fittings.

Kate Webster, head of tax for the Association of British Insurers, said that overall the cut in corporation tax was positive for the insurance sector.However, she said there might be some small downside as insurers also had properties containing assets which attracted capital allowances.British pharmaceutical companies also welcomed the tax cut.

Jean-Pierre Garnier, chief executive of GlaxoSmithKline, said: "The government has been consistent in its support for the R D based industry, helping to put the UK at the forefront of scientific breakthroughs.[The] welcome increase in funding through the R D tax credit and other measures to boost investment in science is further evidence of this approach.The real test now is in translating this additional funding into success stories for the British economy." But he added: "The challenge of science remains so immense that further impetus for collaboration between academia and industry are needed." Jon Symonds, chief financial officer at AstraZeneca, said: "I welcome the chancellor's initiatives to enhance the UK's science-based economy.

The increased investment in science education and enhanced R D credits are positive signs that should encourage sustained investment in the UK.The cut in the corporate tax rate is also a welcome step in improving the competitive standing of the UK." "We welcome any steps that can boost the UK's bioscience-based industry in the face of global competition," said Richard Barker, director-general of the Association of the British Pharmaceutical Industry, the main trade body.Meanwhile, Mark Cubitt, chief financial officer at Wolfson, estimated that the impact of the increased research and development tax credits announced in the Budget would be an additional saving of around £250,000.

Wolfson, which makes audio chips for devices such as mobile phones and iPod music players, spent £29.3m on research and development in 2006, and receives tax credits on R D worth around £1m.Mr Cubitt said he was pleased with the increased tax credits, and said savings were likely to be ploughed back into the company's research budget.Latest on the race for the Elysée palace, plus new campaign diary The Siemens chief executive discusses private equity, unions and Blackstone’s IPO .

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