Key announcements are freezing age-related pensions, dropping business tax, and dropping top income tax rate.
Freezes age-related allowances for pensioners. Political wisdom is that you don’t touch this group because they vote, and vote on selfish issues.
Business tax is falling by one percentage point to 24 percent, and two further cuts in 2013 and 2014 will reduce corporation tax to 22pc. Lower revenue, but it hopes to stimulate business risk-taking.
Top rate of income tax is being cut from 50p to 45p from April 2013. It claims this will actually raise revenue.