George Osborne, the Chancellor of the Exchequer, has announced that the planned cut in tax credits will be scrapped. Osborne made the statement at the annual spending review held today which also confirmed that there would be no cuts in the policing budget.
There will also be additional taxes on buy-to-let landlords of second home buyers as they will pay a surcharge of 3% on stamp duty. The proposed £12 billion of cuts to the social security budget will continue but there will be no cut in tax credits until they are phased out and replaced by the universal credit.
The basic state pension will increase £3.35 a week from next year and there will no longer be tax-free childcare for those who earn more than £100,000.
The full text of the annual spending review is available here.