Budget 2016: Here is everything we know so far about the radical new policies set to be introduced

What we know, ahead of the speech on Wednesday

Low-paid workers get savings top up

The government has announced it will set aside some money to top up the savings of low-paid workers.

Employees on in-work benefits who save £50 a month will get a 50% bonus after two years.

The bonus would be worth £600 in the first two years and a further £600 over the next two years.

Known as Help to Save, the accounts will come into effect in April 2018.

It’s not clear yet how much this measure would cost the taxpayer, though £50 a month is a lot for a low-paid worker to save, so London Loves Business reckons it’s not likely to make a significant dent in the UK’s finances.

Minimum wage

There will be an increase in the minimum wage from October 2016.

The level for 21 to 24-year-olds will rise from £6.70 to £6.95 an hour, while 18 to 20-year-olds will receive a rise, from £5.30 to £5.55 an hour. 16-17 year olds will receive a 13p rise to £4 an hour, while apprentices will get an extra 10p to see their pay soar to £3.40.

This is not part of the government’s new living wage, as these groups are exempted from that pay rise due to their age.

Spending cuts

The UK has to “act now so we don’t pay later”, Chancellor George Osborne said, revealing plans to cut 50p per £100 in government spending.

Osborne said: “My message in this Budget is that the world is a more uncertain place than at any time since the financial crisis and we need to act now so we don’t pay later.

“That is why I need to find additional savings equivalent to 50p in every £100 the government spends by the end of the decade, because we’ve got to live within our means to stay secure.

“That’s the way we make Britain fit for the future.”

The chancellor said the money was “not a huge amount in the scheme of things”.

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