Budget date set for 24th March

The Chancellor has announced that the pre-election Budget will be announced on 24th March.

With the Government deficit at record levels, Alistair Darling is under great pressure to implement further tax raising measures, but with an election round the corner, he can't afford to upset any potential voters.

The main change to the taxation system, which has already been announced, is the creation of a new 50% income tax rate for incomes over £150,000 from April.

Additionally, the personal allowance will be gradually removed for all incomes in excess of £100,000, losing £1 of the allowance for every £2 of income until the entire £6,475 allowance has been eroded.