For the recently formed coalition Government, there has been no easing in period as the main issue affecting Britain right now is the spiralling levels of debt that has recently consumed Greece and sees Spain teetering on the brink, as well countless other European Countries having to drastically reduce national debts.

Chancellor George Osborne's budget aims to get Britain back on sustainable economic levels by 2016, but until then there will be more casualties and that black cloud hanging over the economy still remains, especially as the debt is to peak in 2012/2013.

The budget did provide some good cheer for lower earners, for example, the raising of the personal income tax allowance threshold to £7,475, an increase of £1000 meaning a saving per year of up to 170. Also, that move will erase around 880,000 people from this tax list.

On the other hand though, VAT, as expected, will rise from 17.5% to 20% from January 4th. This will bring the UK in line with most of Europe, as previously the UK had one of the lowest VAT rates around.

CAPITAL GAINS TAX will rise from 18% to 28% for higher rate tax payers.To encourage entrepreurs the 'entrepreneurs relief' rate of 10% on the first £2m will be extended to £5m.

Banks, who previously appeared untouchable, will be made to pay a levy from January 2011. This will affect non-UK banks and building societies operating out of this Country but not small banks; it is expected that will raise over 2bn annually.

Other changes include a freeze on pay for two years for all public sector workers earning over £21,000 pa. Anyone earning less than this will receive £500 over the same period.

The new Government have looked into the benefit system also, going on record to say they want to reduce the number of people on incapacity benefit without denying those that need it their right to claim.

The forecast savings will total £11 billion by 2014/15. Starting with CHILD TAX CREDITS, they will be reduced for families earning over £40,000 whilst low income households will see an increase above the rate of inflation, per child.

Unemployed people will be hit with a 10% reduction in housing benefit if they've been receiving Job-Seekers Allowance for more than 12 months in April 2013.

Health in Pregnancy Grant is scrapped and Sure Start Maternity Grant will be for the first child only. Also addressed is the Disability Living Allowance, a new medical assessment will be introduced in 2013 for both existing and new claimants in an attempt to get more people who are considered fit to work, back to work.

Tough decisions have been taken by the Government, only time will tell whether it's enough.

Written by Josh MacNab