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Voxeo provide a free IVR for development purposes, but I was wondering if there is a much simpler form of test IVR, perhaps which runs on the local machine and uses your microphone and speakers instead of the telephony network?

+1  A: 

You should be able to do this with any VoiceXML IVR that supports SIP in combination with a softphone. There are a variety that do, including Voxeo. For a lower cost solution, you might be able to do something with Astrix and the VXI* based browser that runs on the platform.

Note, be aware that VoiceXML browsers vary from platform to platform. This may or may not be an issue for you when developing and testing your application. You can write fairly portable applications with just a bit of experience across platforms, but if you are new to VoiceXML, knowing how just one platform has implemented the specification can get you into trouble.

As a different approach, you could look at Voiyager that also allows you to drive the call flow with text input or via a programming interface. Disclaimer: I am part of the development team and company that produces Voiyager.

Jim Rush