Businesses believe growth prospects will improve and expect to be hiring more staff as a result of measures announced in the Budget, according to research conducted by BDO.

A poll of business leaders showed that almost a quarter (23%) say their business will consider taking on more employees as a direct result of the £2,000 Employers' National Insurance Credit, which was announced during the Budget last week. BDO calculates this means up to 240,000 new jobs could potentially be created.

The research also found that 43% believe the Budget will help ease pressure on businesses across the UK, while around two fifths (39%) believe it will help make the UK a more competitive destination for international business investment.

However, when asked to consider the direct impact of the Budget on their own business, while a third (33%) of businesses think this will be positive, 50% disagreed.

Stephen Herring, BDO's senior tax partner, said: 'We can identify certain areas where businesses have cause for cautious optimism and the Chancellor should be pleased with the result. However, he needs to go further to accelerate progress and ignite business confidence.'

Herring pointed to the need for further clarification of the anti-tax avoidance measures contained in the Budget as an example. BDO's survey found the majority of businesses (62%) are not confident in defining what the Chancellor and HMRC consider to be unacceptable tax avoidance, as opposed to legitimate tax planning.

Herring said: 'The Chancellor ought to ask HM Treasury and HMRC to prepare a brief paper for him next week setting out a clear framework for these terms or he runs the risk of hampering growth as UK businesses struggle to navigate a confusing system and potential foreign investors look elsewhere for what they perceive to be a clear and welcoming tax system.'

Respondents to the survey also wanted to see further changes to the personal tax system, with IHT, cited by 33%, and Stamp Duty Land Tax (23%) singled out as in need of reform.