Jeremy Hunt freezes tax breaks for 2 more years and lowers top rate threshold by 45p

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Jeremy Hunt raised taxes in his fall return, freezing benefits for 2 more years and lowering the maximum rate threshold by 45p.

The decision not to increase the income figure at which the 20p and 40p rate will come into effect will result in many more people paying tax and paying more to the Treasury.

But the Chancellor said that reducing the starting point of the rate by 45p - from incomes of £150,000 to £125,140 - would see the wealthiest pay an additional £1,200 each year.

Unveiling £55bn in cuts spending and tax increases, Hunt insisted he was making sure "those who have more contribute more" and that tax hikes would avoid "degrading growth". p>

While the increases are "substantial", overall tax rates would remain unchanged - and the percentage of GDP taken in taxes would only increase by 1% cent over five years.

The Chancellor also confirmed that cuts of £4 billion a year in overseas aid will would continue indefinitely, instead revert to 0.7% of national income in 2024.

He confirmed that the budgets of most departments in Whitehall will not be increased in line with inflation rampant - despite these allocations as prices rose by around 3% cent, not 11%.

But he made an exception for education, announcing it would receive £2.3bn additional per year, while new cuts were to be feared.