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Page last updated at 15:06 GMT, Friday, 25 June 2010 16:06 UK

Coalition cuts in London: Hard but Fair?

By Jerry Thomas
The Politics Show, BBC London

George Osborne
Banks will have to find an extra 2bn a year through a special levy

The message was clear - "it's going to be tough, but we're all in it together."

But the truth is that it is going to be tougher for some than others. And some wonder if London is going to have it a bit worse than the rest of the country?

At the heart of the coalition's first budget is the idea that business will lead the recovery, with lower tax rates for corporations and small business.

But certain London industries may not be overly grateful.

Tax breaks

Banks will have to find an extra £2bn a year through a special levy. The multi-million pound video games industry will lose tax breaks.

And that could just be the start of it.

Nobody needs reminding that London is an expensive place to live.

Wages in London are higher than other parts of the country, but that does not necessarily mean people's standard of living is any higher.

Now, parts of the budget are targeted at people's income, so households earning between £58k and £23k are going to lose their child tax credits.

It might be fair. It could even be necessary, but it will almost certainly be harsher on people on middle incomes in London than other parts of the country.

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