Small businesses are to be given a timely boost with exemptions from paying initial insurance contributions.

Unveiled under the banner of the Employment Allowance, the Chancellor said he 'will take the first £2,000 off the employer National Insurance bill of every company.'

The allowance will be available on an opt-in basis and could see 450,000 small businesses - one third of all employers in the country - will pay no NIC at all.

Natalie Langley, senior tax manager at PwC, said the move 'should help businesses attract and pay for new employees to help their growth'.The Employment Allowance will come into effect from April 2014 and is available to all businesses, charities and amateur sports clubs.

For the latest news and analysis on Budget 2013, click HERE