After a day of debate, just one amendment covering emissions duty on tractors was lost, which means duty rises on alcohol (up to 6.6%), cigarettes (6.7%) and petrol (2.1%) will all take effect from 1 January.

And although the long phasing approach will soften the blow, pensioners will see their current £3,000 tax bonus gradually disappear, while homeowners will stop getting a tax discount on the interest that they pay.

There is good news for families though, who will see an increase in the tax relief available for childcare from £12,000 to £14,000 – but top-earners paying at the 20% rate will see their allowances for children phased out.

In all, the tax and duty changes will make an extra £1.8 million for the States next year – but by the time that the mortgage relief and the pensioner’ allowance are gone, the total bonus to the States will be £7.5 million.

Treasury Minister Alan Maclean – in his first Budget debate as “chancellor” – told Members that the Budget was about a long-term plan.

He said: “This Budget is about the future, it’s about some difficult decisions today that will ensure a safe, secure and affordable future for our grandchildren and future generations.”

Budget proposals at a glance…

Income Tax…

– Standard exemption for marginal-rate payers goes up by 0.9% in line with inflation.

– Mortgage interest tax relief to be phased out over 12 years.

– Added exemption for pensioners to be phased out.

– Increase tax relief for child care from £12,000 to £14,000.

– For top earners at 20% rate allowances for children to be phased out.

– Reduction in relief for non-residents.

 

Duty increases…

– A bottle of spirits goes up 6.6% to a total of £13.83.

– A bottle of wine goes up 1.3% to a total of £1.47.

– A pint of beer goes up 0.9% to a total of 35 pence.

– A pint of strong beer goes up 4.9% to a total of 61 pence.

– 20 cigarettes goes up 6.7% to a total of £5.32.

– A litre of petrol goes up 2.1% to a total of 46 pence.

 

Vehicle Emissions Duty…

– Increase income from VED by hitting polluting vehicles.

– Discount for older vehicles cut.

– The 85% discount for hire car firms to be cut.

– VED to be worked out by emissions for commercial vehicles.

 

Plans for 2016…

– Options paper for independent taxation.

– Change Income Tax system for same-sex marriage.

– Continue work on Property Tax.

– Review 1(1)k tax system.

– Review Benefits in Kind.