The one per cent increase in employers' national insurance contributions amounts to a "tax on jobs" it has been claimed.

Industry and commerce gave a mixed reaction to the chancellor's budget - with the CBI accusing Gordon Brown of "giving with one hand and taking with the other".

The organisation's director general, Digby Jones, said: "We are worried that the chancellor is now imposing a business tax burden that impacts directly on the cost of employing people at a time when UK competitiveness is being put to the test.

"An increase in employers' NIC's impacts on every business of every size regardless of whether or not they are making profits."

But business gave a warmer welcome to tax credits aimed at boosting research and development - although business leaders warned that the credit would only work if the government continued with it over the medium term.

Brown's efforts to boost the enterprise culture were also given a warm welcome. "The chancellor has left business in no doubt that he is committed to encouraging enterprise," said Jones.

"The tax improvements, including the red tape burden, are welcome. We especially welcome the financial help for small businesses gaining accreditation as Investors in People."

The British Chamber of Commerce concluded that business had gained in some areas and lost out in others. The incentives to boost investment were negated by the increase in company NI contributions, it said.

"Raising employers' NI contributions is going in the wrong direction. It affects competitiveness. Employers don't draw on the NHS so why should they be asked to pay for it. It's time political parties agreed to merge the tax and NI system," said a spokesman.

The Business Services Association described the budget as "tax-neutral" and concluded it would not excite the business community.

"This is a reasonably tax-neutral budget for companies," said BSA director-general Norman Rose, "although it goes some way towards easing the undoubted burdens on small business. The main impact of Gordon Brown's proposals will be felt by the individual, rather than by the company."