Tax Partner, Nicola Bellerby on the Pre-Budget Report 2009

Chancellor Alistair Darling will hit pay packets more than expected as a result of his Pre-Budget Report, say accountancy and business advisory firm Clive Owen & Co LLP.

Tax partner Nicola Bellerby pointed out that the Chancellor's announced 0.5% hike in National Insurance comes on top of 0.5% announced in last year's PBR, which is also due to take effect in April 2011.

However, she says there is some help for businesses with the six-month extension of the Enterprise Finance Guarantee scheme which underwrites bank loans for businesses.

She said: "The extension of this scheme was crucial. We find clients are not getting access to money when they need to borrow and this will encourage banks to lend more to companies that need some money to invest.

"We also welcome the deferral of a proposed rise in Corporation Tax and the extension of the Time to Pay scheme, both of which will be helpful to businesses."

She added: "Overall this was a pretty neutral package with few surprises, apart from the rise in National Insurance. While there was no great addition to the burden on businesses, there was nothing there to have business people singing in the streets or doing cartwheels."

Further information:

Pre-Budget Report statement delivered by Chancellor Rt Hon Alistair Darling

BBC News highlight the key points