'The whole House will have noticed his transformation from national treasure to Treasury poodle' — Harriet Harman on Vince Cable.
Key measures at a glance
Tax
Vat increases from 17.5% to 20% from January 4. Food, children’s clothing, books and newspapers remain exempt.
Capital gains tax raised from 18% to 28% for higher-rate taxpayers from last week. Annual exemption remains at £10,100. The 10% rate for entrepreneurs will be available on gains of up to £5m, from £2m at present.
Income tax personal allowance raised by £1,000 to £7,475 from April. Basic-rate threshold cut by £2,500 to £34,900.
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Council tax will be frozen for one year from April.
Government to review two-year stamp duty exemption on properties up to £250,000 for first-time buyers. The 5% rate above £1m will stand.
From January, there will be a bank balance sheet levy, raising £2 billion a year.
Families
Child benefit, worth £20.30 a week for the first child and £13.40 a week thereafter, frozen for the next three years.
Health in pregnancy grant, worth £190, axed from April.
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Child tax credit removed from households earning more than £40,000 from April and from those with incomes above about £26,000 from April 2012.
Pensioners
State pension age to rise to 66 from 2016. Coalition will also consult on raising it further, possibly in line with life expectancy so it reaches 70 in about 25 years.
State pension to be linked to earnings from April. It will rise in line with the highest of earnings, the consumer prices index (CPI) or 2.5%.
Requirement to buy an annuity at 75 scrapped in two years and raised to 77 in the meantime.
Public sector
Two-year pay freeze for those on more than £21,000.
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Public sector pensions to rise in line with the CPI, now 3.4%, not the retail prices index (RPI), now 5.1%.
Duties
10% rise in duty on cider reversed by end of month.
No rises in alcohol, tobacco or fuel duty.
Benefits
£11 billion a year will be cut from benefit and welfare payments.
Benefits and tax credits will rise in line with CPI, rather than RPI.
US housing dents Footsie
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The FTSE 100 fell 205 points, closing the week at 5,046, as markets reacted to weaker housing figures from the US Over a year shares are up 19.9% (up 24.2% with dividends) while Halifax’s house price index has risen 5.3% Over three years shares are down 22.6% (down 12.8% with dividends) while house prices have fallen 17.3% Over five years shares are up 0.4% (up 20.9% with dividends) while house prices are up 3% Over 10 years shares are down 20.2% (up 12.2% with dividends) while house prices are up 97% The pound rose two cents against the euro, settling at €1.21, and rose two cents against the dollar, ending at $1.49