(adsbygoogle = window.adsbygoogle || []).push({}); That's right you heard it, VAT has now been increased from 17.5% to 20%, and has cut welfare spending as he moved "decisively" to tackle Britain's record debts.

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Originally posted by another user

Child benefit and public sector pay will be frozen and 25% cut from public service spending - but alcohol, tobacco and fuel will escape tax hikes.

They're freezing child benefits and public sector pay in such difficult times, a huge mass of people could be affected by this, surely. Although trade unions have warned that hundreds and thousands of jobs could be lost in the public services, potentially destroying local economies and creating a "double-dip" recession.
Looking at it in another perspective, this could potentially save a "catastrophic collapse" in the economic confidence. Osborne stressed to say that this will be accomplished in a fair way. Quoting the man himself:

"Everyone will pay something but the people at the bottom of the income scale will pay proportionately less than those at the top. This is a progressive Budget," he said to jeers from Labour MPs.

Originally posted by another user

UK households, on average, will be about £400 a year worse off, Budget documents suggest, with the poorest 10% losing £200 and the richest £1,800, although the poorest will be hit harder than most as a percentage of their income.

These actions do seem rather unfair in my books, this, in my eyes, will definitely cause a "double-dip" recession.
Mr Osborne did however promise to balance Britain's books within five years, with the quantity of the savings to come from cuts to benefits and public services rather than increasing tax.


Final Thoughts:
Finding out about Osborne's plan to balance Britain's books, it surely did surprise me, I didn't expect anything like this to come. This will surely affect most people from Britain, I think these actions have been made too quickly, I see this accomplishing what Osborne is aiming to achieve, but it has been done in an unfair way, in my opinion.


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It's just the government making up for there losses, they put the vat from 17.5% down to 15% for a period of time everyone was happy the government lost money now to make up for it they've put it up to 20%. Eventually it should be put back down to 17.5% again.

What's VAT?

Value added tax. We pay extra on top of what everyone else does. It's the goverments way of stealing money off little kids...

Conservatives are a joke, I bet we go right back into recession.