The Pre-Budget Report starts the long process of cutting the huge budget deficit with increased national insurance contributions and a tax on bank bonuses grabbing the headlines.

Richard Godmon, Tax Partner noted that “The Treasury has proposed only relatively modest net tax rises of around £5 billion by 2012/13, so there is a significant risk that further tax rises will be needed after the general election next year.”

Menzies has set out a summary of the measures introduced in the Pre-Budget Report.