Budget 2012: The key announcements and what they mean

George Osborne lifts the red box before he delivers the Budget in the House of Commons Photo: PA

This is my very brief summary of the budget; George Osborne increased the personal allowance, which will mean basic rate tax payers are £170 a year better off after inflation (total cost £3.3 billion) and cut corporation tax by 1p (total cost £920 million).

He paid for it by getting out of Afghanistan (total saving; £1.5 billion) and freezing the personal allowance enjoyed by pensioners until the allowance enjoyed by the rest of us catches up (logical, but not popular; total saving £1billion).

He cut the 50p rate to 45p,but claimed it wasn't going to cost anything because the top rate was losing us money (a claim backed up by the independent auditor).

He came up with some new wealth taxes, which he believes will be harder to avoid (like a 7% stamp duty rate on expensive houses).

There were new taxes on tobacco (5%) and company cars (complicated). There were no further cuts in fuel tax.

Only people earning more than £60,000 will now lose their child benefit completely.