Chancellor announces new top tax rate of 50 percent to come into effect from next April, with fuel and luxuries also seeing an increase.
The UK's highest earners will be charged an income tax rate of 50 percent from the next financial year, as the government aims to recoup public deficits run up in the credit crunch.
In his Budget speech, Alistair Darling announced the new tax band for those earning more than £150,000 a year. These high earners will also see the tax relief on their pensions reduced from April 2011.
The government is attempting to raise funds to help plug the hole in its finances. Public deficits are expected to reach the unprecedented level of £175 billion this year with government revenue from corporation and other taxes falling in the crisis and rising unemployment placing a greater burden on the state benefit system
However, it is not just the richest people in the UK who will be expected to add to the government's coffers. Alcohol duty is set to go up by two percent - roughly 5p a pint - from midnight, while smokers will see the a rise in tobacco duty of two percent, starting from 18:00 today.
Additionally, petrol duty will rise by 2p a litre in September and then by 1p a litre above inflation each April for the next four years.
