George Osbornes "tough" package puts V.A.T upto 20%

So the day we all dreaded results in a rise in V.A.T by 2.5% effective of January 4th 2011. Amongst other increases, today's budget sees the biggest package of tax increases and spending cuts in a generation.

Income tax allowance is to be increased by £1,000 in April to £7,475. This is worth £170 a year to basic rate taxpayers.

There is no change to cigarettes, alcohol and fuel, however Labour's plan to increase the duty on cider by 10% above inflation will be scrapped from July.

To see all the changes visit the bbc news website.

How will the Budget affect your search for a new home?

On the eve of the Budget we ask how it will affect your search for new homes Birmingham. We all know that the Budget will hurt, but just how much and who will it hurt most? As of tomorrow many of us will be paying more tax and receiving fewer public services.

Tomorrow i'll be analysing how the Budget will affect new home buyers so keep an eye out for the post.