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The Chancellor, George Osborne, has announced his much anticipated 'emergency' Budget to the House of Commons.

Mr Osborne and his coalition partners have spent much of their time since the election preparing the country for what they promised would be the toughest Budget in decades. Faced with a record budget deficit Mr Osborne has targeted both spending cuts and tax rises in what he told the House was a 'progressive budget.

Among a range of measures Mr Osborne announced:

Mr Osborne said of his Budget: "Yes it is tough; but it is also fair. This is an emergency Budget, so let me speak plainly about the emergency that we face.

"The coalition Government has inherited from its predecessor the largest budget deficit of any economy in Europe with the single exception of Ireland.

"One pound in every four we spend is being borrowed. What we have not inherited from our predecessor is a credible plan to reduce their record deficit."

Acting Labour leader Harriet Harman condemned the Budget,

She said: "This is a Tory Budget that will throw people out of work, that will hold back economic growth and will harm vital public services. It's the same old Tories."

Copyright Press Association 2010