Millions of middle-class workers face higher taxes to cut the deficit – Telegraph

Nick Clegg: even more cuts are coming

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The Deputy Prime Minister said that Britain’s £200 billion social security system will eventually have to be rethought in order to make it sustainable.

Mr Clegg’s comments come before George Osborne, the Chancellor, sets out £11.5 billion of cuts in Whitehall departments’ budgets in 2015/16.

Mr Osborne’s Spending Review deals only with the part of the Government’s £720 billion annual budget that covers departmental spending, known as DEL.

Married tax break “doesn’t cut the mustard”

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Conservative MP Tim Loughton has said that David Cameron’s promise to introduce tax breaks for married couples within the next two years does not “cut the mustard”. Mr Loughton promised to continue his attempt to force the Prime Minister to reward marriage in the tax system through a Commons amendment, despite a Government effort to see it off. Treasury Minister David Gauke wrote to MPs on Monday reiterating the Prime Minister’s determination to recognise marriage with a tax break worth £150 a year.

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Shares have recovered some ground from Thursday’s steep losses, which came after the US Fed said it could scale back its stimulus programme.

The main share indexes in the UK, Germany and France recorded gains of up to 1% in morning trade, but then trimmed gains in the afternoon.

Earlier, Asian stocks had fallen sharply before recovering.