Budget: Tax cuts for families and businesses

Chancellor George Osborne has raised income tax allowance to £9,205 from £8,105 from next year in his Budget speech and has cut corporation tax by an extra penny.

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Cameron defends 'fair' Budget

George Osborne and David Cameron after the Chancellor delivered his Budget Credit: PA Wire

David Cameron has defended Chancellor George Osborne's Budget, insisting that it was "fair" after being asked to justify the freezing of age-related allowances for pensioners.

He told a school in Bradford, West Yorkshire: "Every granny in Bradford West, as around the country, is going to be benefiting from the biggest ever increase in the pension that comes in in April - an extra £5.30 a week.

"At the same time the Budget also delivered a tax cut for 24 million people in our country. We have now taken two million of the lowest paid people out of tax altogether so it's a good Budget for our economy and it's a fair Budget for all our people."

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Tax allowance to be raised to £9,205

ITV News has learned that Wednesday's Budget will raise the personal tax allowance - the part of your income that is not taxed - to £9.205. The current personal allowance is £7,475.

  • Personal tax allowance to be raised to £9,205 (£8,105 was expected)
  • Will save tax payers an extra £220 a year (£346 including the expected rise)
  • This will cost the Treasury £5.1 billion

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