UK Raises Taxes, Slashes Government Spending

By Kirsty Walker and Jason Grove

  • VAT to rise 2.5% to 20% from January 2011
  • Deficit reduced 77% by spending cuts, 23% by tax rises
  • Departments face cuts of 25% over the next five years
  • Two-year pay freeze for public sector workers earning over £21,000
  • Child benefit frozen for three years and tax credits cut
  • Disability benefit claimants face new medical checks
  • Corporation tax cut from 28% to 24% over four years
  • Capital Gains Tax hiked to 28% for top-rate taxpayers
  • Bank levy from 2011, raising £2bn a year
  • Income tax threshold raised £1,000 to £7,495
  • Pension link to earnings restored or 2.5% rise from next April
  • Civil list frozen at £7.9m as Queen also feels the pinch

George Osborne today unveiled a ‘bloodbath’ budget of painful tax hikes and savage spending cuts which will hit every family in Britain.

Continue reading Budget 2010: Bloody George Wields The Axe – Public Spending And Welfare Slashed… And VAT Rises to 20%