'Black Wednesday'

Spending cuts and tax changes will begin to bite into family budgets today as the new tax year marks the first full twelve months of the coalition's austerity drive.

Up to 750,000 families will be pulled into the higher 40p income tax rate, while child benefit is frozen and tax credits are scrapped.

Labour has dubbed today 'Black Wednesday', arguing that coupled with January's VAT rise and escalating food and oil prices, families face a serious squeeze on living standards.

But the Treasury said changes to the income tax threshold would leave most low-income families better off.