How will the new Government's emergency budget affect you?

Mother-of-three Tracy Moore, 46, called the increase in VAT was "bit of a killer" and said: "The thing that mostly affects us is the VAT increase. It's a big jump and all at once.

I expect retailers will see a short term jump in sales as we all rush to buy big ticket items before the rise in January."

Mother-of-three Tracy Moore

The Bourne End resident was disappointed that green issues were "hardly mentioned at all" and would liked to have seen increases in air travel taxes, carbon tax and a climate change levy.

Andre de Marsac, who owns a jewellery shop in Beaconsfield, said the budget was "better than I thought it would be".

Andre de Marsac, who owns a jewellery shop in Beaconsfield.

He said: "I'm at the luxury end of the market so if the increase in VAT is going to affect anyone it would be me.

"But I don't think it's going to have a big impact - in the large scheme of things a 2.5 per cent hike is tolerable.

"I will be looking to drop my prices to a degree to reduce the effects on my client base. To do this I will look at where I can make savings elsewhere.

"Things aren't going to be so comfortable but we all know we can't live with this debt."

Peter Robbins, a retired businessman from Gerrards Cross, welcomed a welfare system shake-up that will save £11 billion by 2014/15.

He said: "I'm glad they are doing something to tackle benefit fraud - the fair minded people of this country need to be looked after.

The 67-year-old said he also welcomed plans to introduce a medical assessment for Disability Living Allowance from 2013 for new and existing claimants.

He added: "I have received the allowance because I'm blind, but I gave it to charity. Equally I get money for my heating bills because I'm a pensioner which I really don't need."

Among other measures announced in the emergency Budget, the Government is asking public sector workers to accept a two-year pay freeze.

Promising to deal decisively with the UK's record debts, Mr Osborne said there would be protection for the 1.7 million public servants earning less than £21,000.

Those low-paid workers will receive a flat pay-rise worth £250 in both years.

Lesley Clarke, the leader of Wycombe District Council, said council staff who earn more than £18,000 had taken a voluntary pay freeze for the last two years.

She said: "This will be another year for them on the same rate of pay but they've been doing their bit and have been incredibly good.

"When there's a huge hole in the economy like we have then nothing is sacred."

But Steve Bell, the secretary for the Bucks Health Branch of Unison, said he expected there to be "anger and frustration" among NHS staff.

"It's fair to say they will be extremely unhappy. For the Government to decide our pay in advance of the independent review bodies is going to cause a great deal of anger.

"I welcome the fact that low paid workers within the NHS will be recognised but £250 a year represents an insignificant amount - they deserve a better pay rise than that.

We see staff given an increasing workload and having to cope with more cutbacks and we think we should be rewarded adequately."

Meanwhile, nearly one million people will no longer have to pay income tax following an increase to the personal allowance, it has been announced.

Chancellor George Osborne is increasing the threshold at which income tax kicks in by £1,000 to £7,475 from April next year.

The move will save the UK's 23 million basic rate taxpayers £170 a year, while it will mean around 880,000 people will no longer have to pay the tax at all.

The Chancellor said there would be no rise in alcohol, tobacco or fuel duties.

Child benefits will be frozen for three years, while Capital gains tax for higher rate tax payers is to rise to 28 per cent.

How will the new budget affect you? Leave your comments below.