Budget details

The economy

• The economy is predicted to grow by 1.2 % this year, 2.3% next year, 2.8% in 2012, 2.9% in 2013 and 2.7% in both 2014/15

• Unemployment will peak this year at 8.1% and then fall for next four years, to reach 6.1% in 2015

Tax

• From January 2011, VAT will rise from 17.5% to 20% - although items such as children's clothes and food will remain exempt

• Council tax will be frozen from April 2011

• Capital Gains Tax remains at 18% for low and middle-income savers but higher rate taxpayers will now pay 28%

• Corporation Tax will be cut by 1% annually for the next three years, until it reaches 24%

• Tax credits will be reduced for families earning over £40,000 next year

Borrowing

• The government should have “balanced” the structural deficit by 2015-16

• The balance of spending cuts against tax rises will be 77% : 23% (a slight variance on the Chancellor’s 80% : 20% rule)

• Public sector borrowing will stand at £149bn this year, £116bn next year, £89bn in 2012-13 and £60bn in 2013-14

Spending

• Government departments face a further £17bn in cuts by 2014/15, with unprotected departments on average facing cuts of around 25%

• There will be no further cuts to capital spending, with several major infrastructure projects referenced (such as the redevelopment of Birmingham New Street station)

• Public sector workers face a two-year pay freeze

Welfare

• Child benefit will remain a universal benefit but be frozen for the next three years

• From 2011 benefits will rise in line with the Consumer Price Index, rather than the Retail Price Index - saving over £6 billion a year

• Housing Benefit will be reformed to save £1.8bn a year by the end of the Parliament

Other

• No movement on alcohol, tobacco and fuel

• The government will increase the state pension age to 66

• A bank levy will be introduced, as part of a joint announcement with France and Germany