NI REACTION:Pensioners, low-earning households and small businesses in the North emerged as the major winners from the UK's mini Budget yesterday.

The British Chancellor Alistair Darling's pre-budget report for 2008 was generally welcomed by businesses in Northern Ireland who hope it will deliver on his promise to "protect and support businesses and people".

The main impact of Darling's measures in the North will see a cut in VAT rates from 17.5 per cent to 15 per cent for three months and increased duties on alcohol, tobacco and petrol.

National insurance contributions will rise for everyone in Northern Ireland from April 2011 by 0.5 per cent.

Top earners in the North, anyone who earns more than £150,000, will also be subject to a new 45 per cent higher income tax rate from April 2011.

Families with one or more child will benefit from the early introduction of planned child benefit increases which will now come into effect in January.

Pensioners will also enjoy a one-off payment of £60 for single people and £120 for married couples, which charities in the North have welcomed particularly in light of rising energy costs.

Business advisors PricewaterhouseCoopers have described the Darling's pre-budget report as a "spend now, pay later gamble".

PwC says the British Chancellor's decision to bring forward capital spending programmes in the UK is a gamble aimed at driving the country out of recession.

Larry Darby, tax partner with PwC in Belfast said there are measures that will help tackle deprivation and help Northern Ireland's lowest-income families: "The main beneficiaries are the lowest-paid households, where the VAT element alone should be worth more than £270 per family over the next 12 months."

Darby believes that businesses in the North could benefit from some of Darling's initiatives.

"The measure to offer credit to small businesses via a temporary finance scheme to help ease cashflow constraints is welcome, but this, as with other measures, depends upon the banks supporting the Chancellor.

"As with his VAT cut, a number of these measures will only succeed if financial and lending institutions are sympathetic to business needs," he added.

Darby remains cautious about the impact this "spend-now "pre-budget report will have further down the line.

"The state of the public finances suggests that UK taxpayers, will also have to pay-later," he said.

The Confederation of British Industry has welcomed the deferment of a proposed 1 per cent rise in corporation tax levels across the UK.

The CBI believes the biggest threat hanging over businesses is cash flow and there are some measures in the pre-budget report that will ease this problem.

The Federation of Small Businesses believes a new £1billion fund for small firms announced by Darling could make a significance difference for firms in the North.

Wilfred Mitchell, FSB Policy chairman in Northern Ireland said the report acknowledges how important small firms are to the UK economy.

"The Government's Small Business Finance Scheme, which closely resembles the Small Business Survival Fund the FSB has been calling for, will provide a vital cash boost to businesses struggling with rising costs and a lack of credit.

"Many of these measures, such as giving businesses longer time to pay bills and offsetting losses, will give small businesses a welcome breather from the taxman and allow them to concentrate on sustaining their business, supporting their staff and growing the economy in the long term," Mitchell added.