'Don't blame me... blame Gordon': Osborne attacks Labour 'snipers' as he warns everyone will pay for his 'bloodbath' Budget

Osborne insists economy cuts are 'tough but fair'

FTSE down 40 points to 5207 on opening

Two-year pay freeze for public sector workers earning over £21,000

Child benefit frozen for three years and tax credits cut

Corporation tax cut from 28% to 24% over four years

Capital Gains Tax hiked to 28% for top-rate taxpayers

Income tax threshold raised £1,000 to £7,495

Pension link to earnings restored or 2.5% rise from next April

Whistlestop tour: George Osborne did a series of interviews today to defend his emergency budget

George Osborne today revealed the agonising decisions behind his 'bloodbath' emergency Budget as he faced a backlash from ordinary families stung by his tax hikes.

The Chancellor insisted that he had been forced to raise VAT and freeze child benefit because of the 'massive mess' the country's finances had been left in by Labour.

Millions of middle-class families will bear the brunt of his emergency Budget, losing tax credits, facing a three-year child benefit freeze and paying £500 a year more in VAT.

But Mr Osborne today defended his decision to slash £11 billion from the annual welfare budget and said he had been left with no choice but to take 'tough but fair' decisions.

'It is not because I want to do these things, it is because this country faces a very, very serious debt problem,' he told GMTV.

And Mr Osborne said it would be better if Labour could come up with something constructive instead of 'sniping from the sidelines'.

'The damage to the economy, the people losing their jobs, will come if we do not sort out our problems in this country, and the welfare bills have got out of control,' he said.

'The hole in the public finances was so great and the debts were so large, and people at home know, if you have got a debt problem, you have got to deal with it.'

The Chancellor was forced to listen as he was played angry messages by GMTV viewers, worried by the decision to freeze child benefit.

The budget announced

Read about the budget, The Big Cut

Budget 2010: Britain on 'road to ruin' without cuts

Britain is "on the road to ruin" unless action is taken in the Budget on Tuesday to cut the deficit, Chancellor George Osborne has told the BBC.

Mr Osborne said the coalition had inherited "a truly awful financial situation" and he would set out a four-year plan to deal with it.

Tough action was "unavoidable" but he aimed to provide "prosperity for all".

He also announced ex-Labour minister John Hutton would head a commission into public sector pensions.

Mr Osborne told the BBC's Andrew Marr Show that Mr Hutton's involvement would mean the commission into future pensions would be independent and have cross-party input.

As Britian has ANOTHER non elected PM how is Britain going to cope.

As Britain waves good bye to one non elected PM we welcome in another non elected PM.

With the news the Tory's have selected some of the most right wing Tory's back into government - lets wait for all scandal and controversy to start.

At least this has now reduced as down to only two electable parties - as I believe the electorate will and should punish the Lib Dems for backing the Tory's.

If the Tory's return as the old Tory's will can look forward to another election in early 2011.