Plans to tackle Britain’s record 185 billion euro deficit will be unveiled in parliament today in an emergency budget by the Chancellor of the Exchequer.
George Osborne’s aim is to find 80 percent of the money Britain needs by making drastic spending cuts
For consumers, the message will be that the country needs to live within its means and speculation’s rife VAT sales tax will go up to 20 from 17.5 percent.
But the personal allowance – income on which no tax is paid – is expected to be raised taking nearly 900,000 people out of the tax net.
That measure is likely to be funded by a new annual tax on banks which could raise almost a billion euros.
Pay freezes and public sector pension reforms are also expected.