The Chancellor George Osborne promised in his Budget not to hide hard choices from the British people or "bury them in the small print".
A public sector pay freeze is among measures set to affect many British workers
Here is a list of measures announced in his emergency Budget:
VAT & Duty
:: VAT rise to 20% from Jan 4th 2011
:: No new increases in duties on alcohol, tobacco or fuel on Labour’s March Budget
:: Plan to increase the duty on cider by 10% above inflation to be scrapped from the end of June
:: National Insurance threshold rate to rise by £21 a week from April 2011
:: Corporation Tax to be cut by 1% for four consecutive years to take it to 24%
:: Small companies’ tax rate will be cut to 20%.
:: Bank levy to apply from January 2011 on balance sheets of all UK banks, except smaller ones
:: Personal income tax allowance to be increased by £1,000 in April to £7,475.
:: Higher rate income tax threshold to remain frozen to 2013/14, with a long-term objective to increase the personal allowance to £10,000
Capital Gains Tax
:: Low and middle-income savers to pay Capital Gains Tax at 18%, but from midnight taxpayers on higher rates will pay 28%
:: The 10% Capital Gains Tax rate for entrepreneurs is to be extended from first £2m to first £5m of lifetime gains
:: Low-spending councils in England to be helped to freeze council tax for one year from next April
:: Labour’s landline tax to be abolished
:: Workers in public sector to face two-year pay freeze
:: Flat £250 pay rise for those earning under £21,000
:: Troops’ operational allowance doubled to £4,800
:: Child benefit to be frozen for the next three years
:: Child element of the Child Tax Credit to rise by £150 next year
:: Housing Benefit to have maximum limit of £400 a week
:: Health in pregnancy grant to be scrapped from April 2011
:: Sure Start maternity grant to be restricted to first child only
:: Benefits, tax credits and public service pensions to rise in line with CPI inflation rate rather than RPI
:: Tax credits to be reduced to families earning over £40,000 next year
:: Baby element will be removed for new children from April 2011
:: One-off payment to new workers over 50 scrapped from April 2012
:: Basic state pension to be linked once more to earnings from April next year
:: Pension guaranteed to rise in line with earnings, prices or 2.5%, whichever is the greater
:: Government will accelerate the increase in state pension age to 66.