FIRST-TIME buyers in Bristol struggling to get on to the property market have been offered a glimmer of hope in the budget.

The Chancellor unveiled a £250-million scheme yesterday aimed at helping people who cannot afford the deposit needed to buy a home.

First-time buyers in Bristol currently need to have saved a deposit of at least £34,000 to get a 75 per cent mortgage on a typical starter home.

But under the new scheme people would need to find a fifth of that figure – about £7,000 – to get on to the property ladder, provided they buy a newly-built home. The rest of the money for a deposit would come jointly from the Government and house builders in the form of a loan that would be interest-free for five years.

The scheme has been welcomed by builders and estate agents, although one Bristol agent criticised it for concentrating on new homes and failing to stimulate the wider housing market.

The FirstBuy initiative will see loans made available to around 10,000 people with incomes of up to £60,000 to buy a newly-built property.

In the wake of the banking crisis most building societies are refusing to lend to people unless they have a deposit of 25 per cent.

Last year the National Housing Federation reported that 90 per cent mortgages were only available to buyers earning a combined total of £54,000, while the average income in the city was £20,576 and the average three-bedroom home cost about £190,000.

George Cardale, who is in charge of new-build properties in Bristol for estate agent Savills, welcomed the new scheme, which is almost identical to the Homebuyer Direct scheme, launched in 2009, that helped 9,000 people to buy their first home.

Mr Cardale said: "Any measures which will help first-time buyers get on the housing ladder and therefore improve house-builder confidence are very welcome, particularly in places like Bristol where there is a fundamental shortage of high quality housing stock.

"Last year, we saw reservations fall when the previous Government's shared equity scheme came to an end so we know that this type of assistance has a big impact on first-time buyers who aren't able to fall back on the bank of mum and dad."

Neal Stephens, managing director of Bristol building firm Willmott Dixon, said: "Stimulating the housing market could in turn open employment opportunities, which ties into the proposed funding for 40,000 apprenticeships for young unemployed individuals."

But Adam Offer, managing director of Bristol-based Besley Hill Estate Agents, said the scheme would only scratch the surface of the problems faced by first-time buyers.

He said: "This initiative will encourage first-time buyers to buy new homes at inflated prices on cramped developments with huge inherent parking problems – potentially slums of the future – rather than stimulate the wider housing market where there are many sensibly priced homes."

Motorists were among the first to benefit from Mr Osborne's Budget as the price of petrol fell by one pence per litre at the pumps last night.

Many experts had been predicting a freeze on fuel duty but the unexpected cut, announced right at the end of the Chancellor's speech to cheers from the Government benches, came as some relief after months of soaring fuel prices.

There was also good news on the income tax front.

But the price of beer and other alcohol will rise on Sunday night as the result of an alcohol duty "escalator", introduced by the previous government, under which duty is raised by inflation plus two per cent every year.

This will add 7.2 per cent to the duty charged on beer, wine and spirits – anything from 4p to 10p for a pint of beer, about 15p for a bottle of wine and 54p for a bottle of spirits, according to the Wine and Spirit Trade Association.

Cigarette smokers face a jump of up to 50p on a packet of 20 as a result of an identical decision to stick to plans to raise tobacco duty by two per cent above inflation.

George Osborne stuck to figures announced by Alistair Darling in March last year but announced plans to change the "tobacco duty regime" in the future to stop companies from selling cheaper cigarettes.

The tax people pay every time they fly has been frozen but hoped-for changes to the system failed to materialise.

Robert Sinclair, the chief executive of Bristol Airport, said: "We cautiously welcome the fact that Air Passenger Duty is not going up immediately, as high levels of aviation tax already risk making flying unaffordable for many families on low and middle incomes, and is damaging the tourism economy in the South West.

"The challenge now is to ensure the travelling public is not taxed twice when UK aviation joins the EU Emissions Trading Scheme next year."

The raft of measures announced yesterday has been billed as a "budget for growth" and there were plenty of initiatives aimed at helping the country and small businesses recover from the recession.

Corporation Tax, levied on profits, has been cut.

And the Chancellor has named Bristol as one of the 21 areas which will have an enterprise zone. Planning laws will be relaxed and business rates reinvested in the area picked.

Deputy Prime Minister Nick Clegg was due to release more details today but Avonmouth and the area around Temple Meads station are thought to be leading contenders.

The West of England Local Enterprise Partnership, which will replace the South West Regional Development Agency, is expected to be one of the key organisations in setting up and running the new enterprise zone.

Chairman Colin Skellett said: "This announcement is terrific news because it will make our area more attractive for new companies who will bring fresh investment and deliver new jobs."

The Institute of Directors, one of the leading organisations in the South West welcomed the business- friendly measures. Regional chairman Gerry Jones said: "The combination of reduced Corporation Tax and planning liberalisation will help to lift business confidence at a difficult time."

Paul Rooker, who runs a fixings and tool company in Brislington, believes there was some help from the Chancellor but thinks he could have gone further.

He said: "One of the big headlines was the fuel cut which will help my business a little in distribution costs and will save staff costs when running and maintaining their own vehicles, I guess we have to be thankful for any cut no matter how small.

"And staff should be pleased as they will take more money home with the new increase of the personal allowance, rising to £8,105 in 2012.

"From a business perspective, introduction of a local Enterprise Zone should help local Bristol companies like mine thrive."