Stamp duty will be scrapped for first-time buyers purchasing properties costing up to £250,000. This is double the previous threshold of £125,000.

The move will apply during this year and next year, will mean nine out of ten people buying their first home will not be liable for the tax.

This will be funded through an increase in stamp duty to 5 per cent for residential property over £1 million from April next year.

There was further bad news in the budget for the well-off. Already facing a 50 per cent tax rate on earnings of £150,000, those with incomes over £100,000 a year will have the value of their personal allowances gradually removed.

Elsewhere, there was a surge in tax on cider with a 10 per cent rise set to be introduced. Beer, wine and spirits will rise by 2 pe rcent.

Tobacco duty will rise by 1 per cent above inflation. The price of petrol at the pump is also on the rise. Tax on fuel will rise by 1p in April with another penny being added in October.