There has been much comment since Alistair Darling made his pre budget announcement. The changes will benefit a sizeable percentage of the population.

The inheritance tax threshold increase will be welcomed by much of middle England whose estates have been propelled into the inheritance tax net by the increase in property prices.

The private equity moguls who have taken advantage of the previous 10% charge applied after business assets taper relief have been snared by introduction of flat rate capital gains tax of 18%.

However, what about the entrepreneur who has built up a business over the years? The entrepreneur who offered employment opportunities to members of their community?

The entrepreneur who has increase the governments take of income tax, corporation tax, employers and employees national insurance.

The entrepreneur who in my region of the country employs a sizeable proportion of the workforce?

The entrepreneur who after generating such a significant proportion of the nations wealth is now to pay 90% more tax when they sell their business, prior to a well earned retirement?

The attitude of much of the population will be so what'? The general public will probably assume that none of this affects them, well it does, significantly.

Every individual who has taken out a savings plan with an insurance company (such as an endowment policy) is affected. Every individual who has invested their retirement lump sum or redundancy payment in an investment bond is affected. Those who pay tax at the highest rate of 40% suffer the greatest impact of all.

With the introduction of a flat rate capital gains tax of 18% and the retention of the annual capital gains tax allowance of £9,200 investment bonds and endowment savings plan have suddenly become highly inefficient. Their ability to defer taxation is now of limited value.

Quite simply anyone saving with an insurance company needs to take advice. Soon they will have a decision to make, do they cash in their savings now and pay the tax or do they stick their head in the sand and pay even more tax in the future?

For the majority however there will be no tax to pay now but with prudent planning an awful lot of tax to save in the future.

For those who are fortunate enough to pay tax at the highest rate and have invested in an offshore investment bond they have a painful decision to make and should take advice without delay.

Have Gordon and Alistair engineered this tax grabbing exercise?

I doubt it's even registered yet. One thing is for sure I can see a mortal blow being struck to many of our savings institutions and the casualties will inevitably follow.

MARK ASHTON, Ashton Hoyle Independent Financial Advisers, Blackburn.