UK Budget cuts

Britain\'s finance minister Alistair Darling has announced a public sector pay cap and bank bonus tax, in an effort to cut a huge budget deficit.



Mr. Darling has also announced that national insurance will go up by 0.5 per cent more than previously planned from 2011.



In addition public sector workers face a 1 per cent pay cap.



In his final pre-budget report before a general election, the chancellor also announced a bank bonus tax and a home boiler scrappage scheme.



And he says contributions from the state to the pensions of teachers, local government and health workers and civil servants will also be capped, saving $1 billion annually.



The belt measures are expected to raise $3 billion pounds a year.