The Government has been accused of "declaring war" on public services as the Chancellor unveiled billions of pounds worth of savings and a two year pay freeze for workers.
George Osborne said there will be additional current expenditure reductions of £30 billion a year by 2014/15 and further reductions in departmental spending of £17 billion by 2014/15, with unprotected departments facing an average real cut of around 25% over four years.
Public sector workers will have their pay frozen for two years, with protection for the 1.7 million earning less than £21,000, who will receive a £250 increase in both years.
The Chancellor coupled the public spending cuts with moves to reduce spending on welfare, including the introduction of a medical assessment for Disability Living Allowance from 2013, freezing child benefit for the next three years, abolition of the health in pregnancy grant from next April and restriction of the Sure Start maternity grant to the first child only.
Lone parents will also be expected to look for work when their youngest child goes to school.
The total welfare shake-up will save the country £11 billion by 2014/15, said the Government.
Dave Prentis, general secretary of Unison accused the government of "declaring war" on public services, adding: "This is the most draconian budget in decades."
Unite joint general secretary, Derek Simpson said it was the biggest attack on essential services for a generation, adding: "Today the mask slipped to reveal this Government for what it is - Tory slashers of services and friends of the rich and powerful.
"Where is the promised fairness in cutting the wages of needy households yet fighting shy of closing the tax loopholes which allow the wealthy to dodge their duty to this country? Increasing VAT is reckless - it will stop people spending, harm UK business and choke off the recovery.
"This budget is vintage Thatcher. The Lib Dems have been conned into hammering the poor, choking off investment and cuts that risk plunging this country into a longer and deeper recession. If they do not disassociate themselves from this, then the Lib Dems will have to bear the responsibility."
Bob Crow, general secretary of the Rail Maritime and Transport union said: "Despite all the hype about sharing the pain this is without a doubt a budget for the rich. The champagne corks will be popping in the City bars tonight as the bankers and speculators realise that they have got away with the biggest financial heist on the British people in the history of our nation.
"Instead of sharing the pain, it's the poorest who take the hit while the greedy elite who drove our economy over a cliff fly off to the tax havens to bank the bail-out cash that could have been used to protect jobs, schools and hospitals.
"The increase in VAT, the attacks on pensions and benefits and the pay freeze in the public sector will all hit the poorest the hardest. The VAT rise immediately hits the real cost of living hard and drains money out of the economy choking off recovery and undermining standards of living."
Paul Kenny, general secretary of the GMB, said: "This budget is an almighty gamble. It's the same old Tories squeezing the least well-off households till the pips squeak.
"It took the outgoing Labour Government over 10 years to repair and build up our public services after the years of neglect from the last time the Tories were in office. It has taken the Tories a mere six weeks since taking office to begin the demolition job on public services again."
© 2012 The Press Association Limited
