As George Osborne presented his public spending plan to Parliament, Vincent Duggleby and guests answered your Spending Review questions.
Some of the key points from the Chancellor's speech include:
- The state pension age will reach 66 in 2020, four years earlier than planned.
- A new universal credit will replace benefits and tax credits over the next two parliaments.
- Equitable Life policy-holders will receive a total payout in the region of £1.5bn, starting to make payments next year.
- There must be an increase in employee contributions to pension funds.
- An extra £2bn has been promised for social care by the end of the parliament.
- There will be a permanent levy on banks.
Some of the measures already announced include:
Out-of-work benefits are to be capped at median household income, child benefit will be withdrawn from households with a higher rate taxpayer and the amount of tax-free income that savers can put into their pensions has been reduced significantly.
Back in June, amongst other measures, the budget set out an increase in the rate of capital gains tax (CGT) for higher rate taxpayers, a value added tax (VAT) rise from 17.5% to 20% and a tighter eligibility criteria for tax credits.
Around £83bn will be withdrawn from public spending and an extra £29bn raised through taxes by 2015.
You may already be calculating how you'll be affected by recent announcements about benefits and tax.
These deep spending cuts may repair public finances but what will they mean for your personal or household budget?
If you want to make sense of the 2010 Spending Review, send your questions to Vincent Duggleby and guests.
Vincent Duggleby and Paul Lewis were joined by:
• Michelle Cracknell, Financial Services Consultant, Bluerock Financial Services
• Eddy Graham, welfare rights advisor, Child Poverty Action Group
• John Whiting, Tax Policy Director,Chartered Institute of Taxation