Five reasons you're better off after Budget 2016 - and five reasons you aren't

The good news

Fuel

Fuel duty is to be frozen for the sixth year in a row – despite falling pump prices.

The move will save the average driver £75 a year and £270 a year for a small business with a van.

Mr Osborne said: “I know that fuel costs still make up a significant part of household budgets and weigh heavily on small firms.

“Families paid the cost when oil prices rocketed; they shouldn’t be penalised when oil prices fall. So I can announce that fuel duty will be frozen for the sixth year in a row.”

Help To Save

Up to 3.5 million people will be eligible for a £1,200 bonus on their savings under plans announced ahead of the Budget.

The new Help to Save accounts, which will be launched within the next two years, aim to give low-paid workers a hand to build their rainy-day funds.

No change to a pint

Duty on beer, cider, whisky and other spirits will also be frozen this year – although all other alcohol duties will rise by inflation as planned.

Tax

Hundreds of thousands of Brummies will get a tax cut after with income tax personal allowance rising to £11,500 next year.

Corporation tax – currently 20 per cent – will fall to 17 per cent by 2020.

Cheaper holidays to Wales

Mr Osborne outlined plans for a further £3.5 billion of spending cuts by 2020. That is likely to hit public services.

The current charge is £6.60 for cars and £13.20 for vans.

The bad news

Tobacco

Smokers rarely come out of the Budget well. This year is no different.

Duties on tobacco will rise by up to two per cent above inflation.

If you roll your own, it’s even worse. Hand-rolling tobacco is going up by an additional three per cent.

The outlook is looking bleaker

The outlook for the UK economy was downgraded amid a gloomy outlook for the global economy.

This means there is likely to be more pain in the future to achieve the Chancellor’s budget surplus of £10.1 billion by 2019/20.

Fizzy drinks

There will be a ‘sugar levy’ on soft drinks which will revenues to be spent on school sports

Below: George Osborne announces the sugar levy

Shares in listed drinks firms dropped sharply on the London market after the sugar tax announcement.

Irn Bru maker AG Barr, which also makes Tizer and St Clement’s, fell five per cent, while Robinsons squash firm Britvic fell three per cent and Vimto maker Nichols plunged as much as 11 per cent.

Advice

The Money Advice Service is to be abolished. It has provided financial advice to consumers since 2010 – but no more.

Even more cuts

Mr Osborne outlined plans for a further £3.5 billion of spending cuts by 2020. That is likely to hit public services.

Read more: George Osborne's message is 'don't blame me when it goes wrong'