[QODLink]
Europe
UK reveals 'tough but fair' budget
Coalition announces harshest cuts to public spending in a generation in bid to tackle debt.
Last Modified: 22 Jun 2010 17:08 GMT

Britain's new coalition government has announced the country's toughest cuts to public spending in a generation in a bid to reign in record debts of $230bn.

George Osborne, the UK finance minister, said the emergency budget aimed to "balance the books" within five years.

Public sector pay for those earning over $31,000 will be frozen for two years while a number of welfare benefits will be reduced.

Consumers were hit with a rise in VAT, the country's broad-based tax on sales and services, from 17.5 per cent to 20 per cent from next year.

Osborne described the budget as "progressive" and "tough but fair".

Hamish Macdonald reports from London.

Source:
Al Jazeera
Topics in this article
People
Country
Featured on Al Jazeera
Italy struggles to deal with growing flood of migrants willing to risk their lives to reach the nearest European shores.
Israel's Operation Protective Edge is the third major offensive on the Gaza Strip in six years.
Muslims and Arabs in the US say they face discrimination in many areas of life, 13 years after the 9/11 attacks.
At one UN site alone, approximately four children below the age of five are dying each day.
Featured
Local painters forgo experimentation to cater to growing number of foreign buyers.
Cyprus is a tax haven and has long attracted wealthy Russians, but it could become a European energy hub.
Palestinians in Gaza have been shocked by the scale of Israeli destruction, as long-term truce efforts continue.
The Positive Action Foundation Philippines, manned by HIV-positive staff, provides care to those who have no one else.
A former rebel's museum keeps alive memories of the July 26, 1953 veterans who launched Cuba's revolution.
join our mailing list