The independent Institute for Fiscal Studies warns of more borrowing, more public sector jobs losses, and more cuts to public spending.
The Chancellor has jumped to defend a Budget that appears to target pensioners and, according to the IFS, may not be as neutral as claimed.
The Chancellor's announcement of freezing pensioners allowances caused widespread anger, but who will be affected by the "granny tax"?
A pensioner has told ITV News that he "will not be better-off" from the government's new measures on pensions.
The Budget has increased the pressure on pensioners income, with the freeze in their allowance and the new 7% stamp duty for buyers of £2 million homes, according to Key Retirement Solutions.
Retired people needing to sell their home to raise money won’t have to pay the new stamp duty rate but could end up paying the price if sales fall through or are delayed.
We are seeing an increasing number of customers with £1 million and £2 million houses using equity release to free up cash and would expect this could increase.
– Dean Mirfin, Group Director at Key Retirement Solutions
The Budget has held out the prospect of a flat rate £140 State Pension which is welcome when it comes but the freeze on personal allowances will have a massive effect on pensioners next year and beyond.”
Labour have been granted an emergency question on Budget leaks in the House of Commons at 11.30am this morning, according to Sky News.
Chancellor George Osborne said OAP's are "getting the biggest ever increase in the state pension" as he looks to quell anger over the so-called "granny tax".
Chancellor George Osborne told Daybreak that the introduction of the state pension in a few weeks time will give pensioners "over £5 a week" extra, leaving them "better off".
Shadow Chancellor Ed Balls told Daybreak he was "baffled" by George Osborne's decision to freeze pensioners allowances in his Budget.
Chancellor George Osborne told Daybreak that the biggest measure in his Budget was a tax cut for 23 million people and denied accusations that the government are not taxing the rich.
Chancellor George Osborne told Daybreak that pensioners "will be better off" when state pensions are increased in a few weeks time.
He added that no pensioners "would lose any cash".
Chancellor George Osborne says he's delivered a budget to support working families.
Ed Balls claims it looks like a Budget made to keep the Coalition together rather than one made for the good of the country.
Both men will have their say on Daybreak this morning.
Watch the Ed Balls interview on ITV1 at 6.40am, followed by George Osborne at 7.05am.