Emergency Budget

Chancellor George Osborne has today unveiled his emergency Budget which will see public sector pay frozen for two years.

Millions of public sector workers earning over £21,000 will see their pay frozen for two years with protection for the 1.7million earning less than this.Those earning less will receive pay increases of £250 a year for each of those two years.

He also announced that councils which propose low council tax increases will be offered extra funds to allow them to freeze the tax for one year from April 2011.

He said government departments whose budgets have not been ring-fenced would face spending cuts of 25 per cent.