[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
The conservative UMP party suffers from crippling internal divisions and extreme debt from mismanagement.
More than fifty years of an armed struggle for independence from Spain might be coming to an end in the Basque Country.
After the shooting-down of flight MH17, relatives ask what the carrier has learned from still-missing MH370.
Human rights and corporate responsibility prompt a US church to divest from companies doing business with Israel.
Afghan militias have accumulated a lengthy record of human-rights abuses, including murders and rapes.
join our mailing list