The British finance minister George Osborne presented an austere budget, reducing spending and raising taxes, while announcing the establishment of a tax on banks to reduce the deficit.
The Chancellor of the Exchequer said that state spending would be reduced by approximately 25% over the next five years, while the VAT will be raised to 20% next year, against 17.5% this year.
The tax on banks will raise 1.2 billion pounds (1.4 billion euros) on the fiscal year 2011-2012, shows the draft budget for 2010.
The proceeds of this tax will peak at 2.5 billion pounds in fiscal 2013-2014, according to government estimates.
Almost a million Britons are among the poorest in contrast cease to pay income tax through an increase of one thousand pounds of tax threshold.
The tax on companies that emit more than 1.5 billion pounds will be lowered by one point to 27% in 2011, starting a gradual decline of this tax will be reduced each year until it fell to 24% .
The smaller companies will be taxed on it at 20% from April 2011, a decline of one point.
GROWTH AT RISK
This ad has benefited the British government bonds, investors felt that the government's plan is likely to reassure the rating agencies.
These have warned Britain that its triple-A could be threatened if the plan presented by George Osborne, to reduce a deficit amounting to 11% of GDP, would fail to convince.
An M & P has already indicated that the agency would examine in detail the proposed budget he described as complex before deciding on the rating of the country.
George Osborne said that just over three quarters of fiscal tightening would be attributable to reductions in public expenditure and the remainder provided by taxes.
The social benefits will be covered and the expenditure of the royal family will not escape tighter controls.
"When we say we are all involved, we mean it," said George Osborne.
Some economists believe that the severity of the fiscal adjustment could jeopardize the economic recovery of British extricates its worst recession since the Second World War.
U.S. President Barack Obama has warned his counterparts at the G20 against the temptation to stop too early to support the economy.
"It seems to be a tighter budget than many had expected," said Jonathan Loynes, chief economist for Britain at Capital Economics.
George Osborne believes his side there is no time to lose even though he admitted that growth would be down this year and next year because of this budget.
The agency responsible for overseeing the UK budget, set up last month by George Osborne, has lowered its growth forecast to 1.2% this year and 2.3% next year while she was counting on earlier 1.3% and 2.6%.
Net borrowing in the public sector is now estimated at 149 billion pounds, 10.1% of GDP, but it should fall to 20 billion pounds, 1.1% of GDP in 2015-2016.
The structural deficit, which is not subject to variations in the economic cycle, expected to fall to 0.3% in five years, against 7.4% this year.