Budget 2009: The big measures
How did the Budget affect you? We go through all the major points to see how they hit you.
Did Darling leave you better off or will you be paying more to the Treasury?
Watch the Full Budget 2009 Speech on Parliament.TV
Income tax and National Insurance
The big headlines from the Budget were for the new 50p tax band.
From next April those earning over £150,000 a year - one per cent of taxpayers - will face a new 50 per cent rate.
Initially there was to be a 45 per cent rate, starting the year after next.
Those earning over £100,000 will also see the benefits of personal allowances removed.
Bill Dodwell, head of tax policy at Deloitte, explains: "The Budget is full of lots of headline-grabbing measures, however, many of them will actually apply to relatively few people.
"This is of little surprise, given that we knew that the chancellor had little to play with, and it is surely right that it is the individuals most in need who will benefit."
He explained the new top rate of tax will affect 350,000 people, and the 700,000 people earning over £100,000 will lose around £220 a month.
All the other major income tax decisions were made in the pre-Budget report.
Personal allowances for income tax for the current tax year are already up - by £440 to £6,475.
Personal allowances for those over 65 and 75 rose by £460 to £9,490 to £9,640 respectively.
However, national insurance contributions were increased - reducing the amount of the gains from personal allowance increases.
After rises this month, from April next year, the child element of the Child Tax Credit will increase by £20.
The chancellor also claimed closing tax loopholes would earn the Treasury £1 billion extra revenue over the next three years.
Fuel, alcohol and cigarettes
Increases to fuel duties will hit many people and wipe out gains from other tax cuts.
From September 1st, petrol duties are set to rise by 2p per litre - then from April 2010 the tax on fuel will rise by 1p per litre over the rate of inflation.
Increases to alcohol duties should see 1p added to a pint of beer, 4p to a bottle of wine and 13p to a bottle of spirits. Alcopops will rise 1p.
A packet of 20 cigarettes will rise by 7p, a 25g of rolling tobacco will rise 7p and a packet of five cigars will see tax increased by 3p.
Pensioners
The Budget saw a number of measures to aid pensioners.
While the pre-Budget report saw those over 65 receive higher personal allowances, further measures for savers were introduced.
From November 2009, the saving limit at which pensioners' Pension Credit is reduced will rise to £10,000 - from the current level of £6,000.
"This will benefit over half a million pensioners on modest incomes, who will gain by an average of £4 per week," the chancellor said.
Current winter fuel allowances of £250 for over 60s and £400 for over 80s will remain, despite energy price falls.
Basic state pension will increase by 2.5 per cent next year - even if inflation is below this level.
Grandparents of working age who help with childcare of grandchildren will also gain with National Insurance contributions heading towards their entitlement for the basic state pension.
Savings and pensions
The big push to aid savers came with the increase for the ISA allowance to £10,200 - from £7,200.
Savers will be able to put £5,100 a year in a cash ISA.
These higher limits will be available to people aged 50 and over from 6 October 2009 and available to all from 6 April 2010.
The Treasury claims it will benefit some five million savers who use their full allowance to save or invest tax free.
The big headline for pensions was the reduction in tax relief for those earning over £100,000 to the general 20 per cent level.
There are suggestions this could lead higher earners to use ISAs more for long-term savings, as well as undermining general confidence in pensions.
Jobs
The chancellor was keen to impress that the Budget was focussed on creating jobs.
Indeed, he mentioned the word 'jobs' 26 times in the speech.
An additional £1.7 billion of funding for Job Centre Plus was announced.
Funding will also be sent towards those unemployed for over 12 months and "everyone under the age of 25, who has been out of work for 12 months, will be offered a job or a place in training" from January, the chancellor announced.
Funding was also provided for jobs in growth industries.
Statutory redundancy pay was increased from £350 to £380 a week.
Company cars
The chancellor announced company benefits such as company cars will face more tax.
In particular those with luxury cars well be affected - having to pay tax and national insurance on their benefit.
Graham Farquhar, global employment tax services partner at Ernst & Young, explained some employees could see their tax bill for their car double depending on the model.
"Employees will face greater tax bills on their luxury company cars from 2011."
He explained previously, the list price was capped at £80,000 - leading some company cars to have unexpected tax breaks based on emissions.
"For example, Bentley were predicting that all their models would meet this limit by that date, several top executives seemed to be in line for a tax reduction," he said.
"From 2011, HMRC will scrap the £80,000 list price cap which will not only mean higher costs for employees but also higher national insurance costs for employers."
Full details of all changes are available on the DirectGov website
Full details of all changes are available on the DirectGov website
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