Director, National Institute of Economic and Social Research

The main budgetary news is a move to flatter taxes. The budget removes the 10p rate of tax on earned incomes which Mr Brown introduced in 1997, so as to meet most of the cost of reducing the standard rate from 20p to 22p. A further bump in tax rates is taken out by raising the point at which employees' national insurance contributions stop to that at which 40p tax starts. Taking the two together and including national insurance contributions charged to employers, the tax rates will be 43.8p or 53.8p.