Budget 'will give with one hand and take with the other'

This week's Budget will benefit some people and hinder others, according to the Independent.

A two per cent cut in the basic rate of income tax will benefit most people - however, this reduction will mean less relief on pension contributions.

Tax specialist for NFU Mutual Shelagh Hamer comments: "Those paying into private plans will have to pay two per cent more in premiums just to maintain current levels of saving."

The chancellor's plan to increase the amount that can be paid into Isas from £7,000 to £7,200 a year has also been criticised for not going far enough.

Capital gains tax (CGT) reforms will also create winners and losers - with the introduction of a flat rate of 18 per cent, replacing the current complex system.

Buy-to-let investors will benefit from the reforms, however basic-rate taxpayers who have shares in their companies will see the amount of CGT they pay increase from five per cent to 18 per cent.

Just seven percent of small business owners believe Wednesday's Budget will have a positive effect on their companies, the London Stock Exchange reported today.