GRAPHIC: click here to view the 2009 budget tax tables

Will I pay more income tax as a result of this Budget?

Only if you earn more than £100,000 a year. From next April people earning more than this will see their personal allowance – the amount that they can earn without paying tax – gradually withdrawn. For every £2 of earnings above £100,000, the personal allowance will be cut by £1, meaning that anyone who earns more than £112,950 will no longer receive a personal allowance at all. These high earners will pay an extra £2,590 income tax a year, based on 40 per cent of £6,475, the current personal allowance.

The personal allowance for 2010-11 has yet to be announced. However, we do know that from April next year the 350,000 people who earn more than £150,000 a year will also be subject to a new 50 per cent top rate of income tax.

I save regularly into a pension. How will the new rules on tax relief affect me?

The changes announced yesterday will not affect anyone who earns less than £150,000 a year. But from April 2011 those earning more than this will no longer receive tax relief of 40 per cent on their pension contributions. Instead, the relief will be “gradually tapered” to the same 20 per cent rate that basic-rate taxpayers receive. In effect, this means that from April 2011 the highest earners will have to contribute more to their pensions to receive the same level of income when they retire.

Does the Budget mean that motorists will have to pay more?

As sure as night follows day, drivers are hit with higher taxes each Budget. Fuel duty will rise by 2p a litre in September, after the 2p increase on April 1. The Chancellor also announced a return to the fuel duty escalator, which will increase tax on petrol and diesel by 1p a litre above inflation each year for the next four years. The end of the VAT reduction on January 1 next year will also add 2.5 per cent – or 2.4p – to the cost of a litre of fuel.

Was there any good news for car owners?

Yes, but only for people with old cars who are contemplating buying a new one. From next month, the owners of cars or small vans registered on or before July 31, 1999, will receive a trade-in value of £2,000 for their old vehicle if they buy a brand-new one. Car dealerships will administer the scheme, which will finish in May 2010.

Were there any measures to support the housing market?

Yes. The Chancellor promised to guarantee £50 billion of new mortgage-backed securities under a scheme designed to increase the funding available for new mortgages, which should help to stabilise the housing market. Mr Darling also extended the stamp-duty holiday on all homes worth less than £175,000 until the end of the year. Homeowners struggling with their mortgage repayments will receive further help.

What help was there for pensioners?

For once, pensioners did relatively well from the Budget. The Chancellor promised that the basic state pension would increase by at least 2.5 per cent next year, irrespective of whether the retail prices index, on which increases are usually based, is negative. Mr Darling also extended the winter fuel allowance for another year, a benefit that is worth £250 to the over60s and £400 to the over80s. The eligibility criteria for the Pension Credit was widened so that pensioners with savings of up to £10,000 will now qualify. The pension credit guarantees the elderly a minimum weekly income of £130.

I look after my grandchildren. Was there anything in the Budget for me?

Yes, but only if you are under 65. Grandparents of working age who look after their grandchildren will be credited with national insurance contribution years, which go towards their basic state pension entitlement.

Was there anything for families?

Yes, but only a very small amount, and only for families on low incomes. The Chancellor announced that the child element of the child tax credit would go up by £20 a year more than inflation from next April, amounting to an extra 38.4p per week per child. The Government will also contribute £100 a year to the Child Trust Fund accounts of all disabled children.

Was there any help for savers?

Yes. From next April the amount that you can save each year tax-free in individual savings accounts (Isas) will rise from £7,200 to £10,200. You will be able to put the entire amount into a stocks and shares Isa, or up to £5,100 in a cash Isa and up to £5,100 in a stocks and shares Isa. Savers over 50 will be able to benefit from these higher limits from October.

How else might the Budget affect my finances?

Beer drinkers can expect to pay 1p extra a pint immediately. A bottle of wine will go up by 4p and a bottle of spirits by 13p. The Chancellor said that would increase tax on alcohol by two percentage points more than inflation in each of the next four years. Tobacco duty will also rise, adding about 7p to 20 cigarettes.

I have recently lost my job. Did the Chancellor announce anything to help me?

The Government will put an extra £1.7 billion into running the Jobcentre Plus network and its New Deal programme for the unemployed. In addition, everyone under the age of 25 who has been out of work for more than a year will be offered a place in a training scheme. Statutory redundancy pay to help people when they lose their jobs was increased from £350 to £380 a week.

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