Chancellor Jeremy Hunt announces major tax and spending changes

Spending cuts of £35bn and tax rises of £20bn expected

Chancellor Jeremy Hunt has unveiled the government's tax and spending plans, which include a bigger than expected cut in National Insurance and a freeze in income tax personal allowances.

The Chancellor said that the government has had to take "difficult decisions" to put the economy back on track, but that these changes will help to "secure our future prosperity".

The BBC reports that the spending cuts will be made across government departments, with the biggest reductions coming from the Department for Work and Pensions and the Ministry of Defence.

The tax rises are expected to come from a combination of increases in income tax, National Insurance and VAT. The government is also considering introducing a new wealth tax.

The Chancellor's announcement has been met with mixed reactions. Some economists have welcomed the changes, saying that they will help to reduce the deficit and put the economy on a more sustainable footing. However, others have warned that the cuts will have a negative impact on public services and that the tax rises will hit the poorest hardest.

The full details of the government's tax and spending plans will be set out in the Budget, which is due to be published in the spring.