London:
Britain announced the toughest cuts to public spending in decades and new tax rises on Tuesday in an emergency budget aimed at sharply reducing the country's record debts.
The pain fell on shoppers who will be paying higher sales tax, wealthy people who will be hit for higher capital gains taxes, and banks targeted by a new levy. Even Queen Elizabeth II, who accepted a freeze in her support from taxpayers, will feel the pinch.
There was good news for business, which will benefit from a cut in corporation tax from 28 percent to 24 percent over four years, and for cider drinkers who will be taxed less for their drinks.
Treasury chief George Osborne told the House of Commons his program would allow the country's new government to cut borrowing from about 10 percent of gross domestic product to 1 percent within its 5 year term of office.