The Conservative and Liberal coalition government has announced that it will hold its first Budget on 22 June 2010.

As part of their coalition deal, the Conservatives and Liberals agreed to reduce spending by £6bn in the current year with the reduction of the UK's borrowing being seen as a main objective.  Mr Osborne, the chancellor, said the "bulk" of his deficit-reduction measures would take the form of spending cuts rather than tax rises. "

In pre a election statements the Conservatives stated they had "no plans to raise VAT in their first Budget”, however the Liberals claimed such an increase was likely.  In a speech after the election David Cameron, the Prime Minister, refused to rule out increases in the current VAT rate.

The coalition has alluded to an increase in capital gains tax for non-business investments from the current 18 to 40% as well as a removal of the planned increase in employer National Insurance contributions.

An agreement has also be struck to raise personal allowances over a period of time raising the point at which people start to pay income tax.
 
The coalition agreement states that child tax credits and child trust funds for families on higher than average incomes will be reduced.