George Osborne unveils his first budget

Chancellor George Osborne has revealed the details of the budget today, which has attracted controversy by some people around the country. Osborne said that he has had to move “decisively”, which can be deemed “tough but fair.”

VAT has been increased from 17.5% to 20%, while child benefit and public sector pay will be frozen. This action has been taken to tackle Britain’s record debts. Public service spending will also be cut by 25%. What do you make of the decisions? Do you feel the chancellor has got it right?

Surprisingly the prices of tobacco, alcohol and fuel have not gone up. Tax credits are due to be cut for families who earn more than £40,000 a year. A two-year pay freeze is also going to be enforced for public servants who earn over £21,000, while those who earn less will each receive a pay rise of £250. Coming into immediate effect at midnight tonight is the capital gains tax rise, which is increasing to 28%. What are your views on this?

As for single parents, they will be expected to look for a job once their youngest child begins school. There will be an extra £150 a year given to the poorest families though, through changes to family tax credits. Does this seem fair to you? Labour have come out strongly against the new budget by claiming it was “reckless” and would “throw people out of work”.