750,000 households will find themselves paying a higher tax burden in the changes taking place on the 5th of April. Overall the average household will be £200 worse off, however jobless families and low- to middle-class couples will benefit from increases in personal allowances and child tax credits. Increases in the main rate at which National Insurance is charged will mean those earning around £35,000 a year will be better off.

However, the 40% threshold will be levied at £35,000, £2,000 less than last year. This will mean people will end up paying more, with the real losers being the very rich who will suffer from restrictions to private pension contributions, a 50% tax rate for earnings above £150,000, and withdrawal of income tax personal allowance above £100,000. Removing the personal allowance will mean that earnings between £100,000 and £115,000 will face a 60% marginal tax rate. In future, the highest taxpayers will have child benefits removed.

It’s a difficult time for the economy and these latest measures show the emphasis the government has put on trying to achieve a balanced budget. These conditions are, according to the government, the best way to encourage growth again.