Pension age increased accelerated to 66
The Government will accelerate the increase in state pension age to 66.

Two-year pay freeze for public sector workers
The Government is asking public sector workers to accept a two-year pay freeze, with protection for the 1.7 million public servants earning less than £21,000.

Child benefit frozen for next three years

National Insurance threshold rises
From April 2011, the threshold at which employers start to pay National Insurance will rise by £21 per week above indexation.

VAT to rise from 17.5% to 20% No increases in alcohol, tobacco or fuel duty
No new increases in duties on alcohol, tobacco or fuel after the "substantial increases" announced in Labour's March Budget.

Cider duty hike scrapped
Labour's plan to increase the duty on cider by 10% above inflation will be scrapped from the end of this month.

Tax allowance increased by £1,000
Personal income tax allowance to be increased by £1,000 in April to £7,475. Some 23 million basic rate taxpayers will gain up to £170 a year.

State pension to be linked to earnings
The basic state pension will be linked once more to earnings from April next year, with the pension guaranteed to rise in line with earnings, prices or 2.5%, whichever is the greater.