George Osborne
Media playback is unsupported on your device

Budget 2015: How will Budget affect UK economy?

George Osborne has used his first Conservative Budget to slash benefits for low paid workers - but will force businesses to pay them more.

A National Living Wage, starting at £7.20 and rising to £9 an hour by 2020, replaces the £6.50 minimum wage.

The chancellor scrapped student grants and froze working age benefits but increased the overall tax take to slow the pace of welfare cuts.

The BBC's Economics editor Robert Peston looks at the impact of Mr Osborne's plans.

  • 08 Jul 2015
Go to next video: 'Britain has turned a corner'