Business leaders have warned that the Budget's increase in National Insurance Contributions could cost 57,000 jobs.

The Budget did not reverse the 1% increase that will be implemented from April 2011.

However, other measures such as the £2.5bn growth fund for small and medium-sized businesses and an extra 15% of government contracts - worth £15bn - being awarded to SMEs have been welcomed.

The Chancellor also announced that business rates will be cut for one year in October, meaning that half a million small firms should be in line for a tax reduction.