Parker's brings you the full details of the 2010 Emergency Budget and how it will affect you and your car.
We keep you updated with live coverage from the House of Commons as the new coalition government introduce its plans to cut the huge deficit.
Analysts look to have got it correct with an increase in VAT, however, this could be postponed until 2011 to help growth in the short-term. This is how the Budget unfolded.
12.30pm 2010 Emergency Budget begins
12.35pm Chancellor George Osborne: 'This budget pays for the past and plans for the future' and claims that Labour had no 'credible' plan to deal with the deficit.
12.44pm The chancellor admits the deficit must be reduced by lower spending rather than higher taxes.
12.46pm The Chancellor has confirmed that the current government will not join the Euro in this parliament.
13.01hrs Planned increase in state pension age to 66 to be accelerated.
13.15hrs The chancellor says the only way to achieve sound public finances is an increase in tax rates. VAT will go up from 17.5% to 20% from January 4 2011.
13.17hrs There will be no new increases in fuel duty, however, the VAT increase from January 4 2011 will see a rise in prices.
13.23hrs Insurance Premium Tax will increase by 1% from 5% to 6%, meaning you will have a larger insurance bill.
13.28hrs 2010 Emergency Budget ends