THE coalition Government's emergency budget has been described as "tough but fair" by Sevenoaks MP Michael Fallon.

His comments came just minutes after Chancellor of the Exchequer George Osborne presented his first budget to the House of Commons.

It saw VAT increased to 20 per cent, Child Benefit and public sector pay frozen, Corporation Tax cut and the threshold for Income Tax raised by £1,000 to £7,475.

It also piled an additional £17 billion savings on to Labour's previously identified target of £44 billion.

This brings the total amount of money to be saved by the end of this Parliament in 2015 to £61 billion.

"The pain is spread," said Mr Fallon. "With Capital Gains Tax and VAT everybody will lose out, except for the very poorest, who will be protected.

"Those on low earnings will pay less tax and pensioners will have bigger increases each year than in the past."

Speaking on VAT, Mr Fallon added: "I hope shops and businesses can live with it. Obviously it's not good news for anybody, but it's necessary to close the deficit.

"It makes our VAT rate similar to that of other European countries."

Under the Tory and Lib Dems' plans an average of 25 per cent will be squeezed from departmental budgets.

Only budgets for the Department of Health and for overseas aid will be protected.

Child Benefit is to be frozen for the next three years.

Public-sector pay for those earning more than £21,000 will be frozen for the next two years, while those earning less £21,000 will get a pay rise worth £250 in both years.

Corporation Tax will be cut from 28p to 24p over the next four years to make Britain more competitive and to stop businesses moving overseas.

Mr Fallon said the plan to raise the threshold for people paying Income Tax would mean 750,000 of the lowest-paid people in society would avoid paying it at all.

"That makes it more worthwhile to work than being on benefit," he said.

There are no plans to make cuts to capital spending, something described by Mr Fallon as "a relief".

However, the cash needed to build the new Knole Academy is still not secure.

Mr Fallon said he is to meet with Kent County Council leader Paul Carter to talk about the matter tomorrow.