This is because Gordon Brown has increased the amount companies can spend on their staff tax-free - it could mean the difference between sparkling wine and champagne.

Under existing Inland Revenue rules, companies can spend up to �75 a head on Christmas parties tax-free.

The chancellor now plans to double this amount.

Gold watch

Leaving parties could also become more generous.

Under current rules, an employer can make a tax-free award such as a clock or watch, but not cash, to an employee in recognition of the length of their service.

The employees must have a minimum of 20 years with the employer and the gift can be valued at up to �20 for each year of service.

The chancellor plans to raise this to �50 for each year.

Other gifts given by third parties, such as clients, can be tax-free up to �150.

This amount is to be lifted to �250.