The top rate of tax - on income tax over £150,000 - will drop to 45p from April next year.
The Chancellor said the 50p rate raised £1 billion - only a third of the amount forecast.
Ed Miliband told the Commons that the move marked the end of the Government's claim that "we are all in it together".
The Treasury acknowledged that some 4.5 million pensioners will lose out as a result of a decision to phase out age-related allowances.
Under the Chancellor's plans, allowances will be withdrawn for new pensioners from April next year while existing pensioners will have their allowances frozen at £10,500 for the over 60s and £10,660 for the over 75s until overall tax thresholds catch up with them.
Age UK said it was "disappointed" with the move, warning that it could leave some pensioners up to £259-a-year worse off, with little chance to change their retirement plan.
Good news for business came in the form of another 1% cut in the rate of corporation tax from next month to 24%.
He said that by 2014, the rate would be 22% which is "dramatically lower" than competitors.
Losers: High-earners with children
Child benefit will be reduced incrementally when one member of the household earns more than £50,000.
It'll be removed completely at £60,000.
Personal tax allowances will rise by £1,100 to £9,205 from next April, making 24 million people £220 a year better off.
However the Citizens Advice charity seemed unimpressed:
Losers: 'Mansion' owners
Osborne announced a stamp duty rate of 7% on homes costing £2 million or more from midnight tonight, which will mostly affect buyers in London.
Losers: Smokers and drinkers
Tax on beer will increase by 2% above RPI inflation, so prices will rise by 5% from next week.
Duty on all tobacco products will also rise by 5% above inflation - slapping 37p on a packet of cigarettes from 6pm tonight.