I have acquired similar to do up or rob for spares. I don't have a definitive answer about the PTO shaft, but would imagine that if it is not turning prior to the clutch, then it must be a broken drive within the Briggs and Stratton engine. If it were this, it is proabably fixable, but you'd have to question whether it's worth the hassle of removing and stripping the engine, acquiring new parts and re-installing. I think Hayters were built to last (and do last much longer than "modern" lawnmowers), but everything has to expire at some point! As a check, do all the safety things (spark plug disconnect, petrol out etc) turn upside down, rotate blades by hand and see if the PTO shaft rotates. If it does, then your problem will be in the clutch or drive train downstream of the clutch.
A useful link is http://www.shouldersofshoreham.co.uk/sos_17Bamp.mvc?p=216-80301 which shows an illustrated parts breakdown. You can back navigate from there to find your model.
Andrew Gosden, June 2009