The Government has introduced a new 45% income tax rate for anyone earning more than £150,000.

The new rate affects the top 1% of earners, who have also been hit by the removal of the personal income tax allowance.

The changes were announced in today’s Pre-Budget Report, which also saw the allowance given to those who lost out as a result of the ending of the 10% income tax rate made permanent.

The allowance was raised from £120 to £145.

Chancellor Alistair Darling maintained that the current economic climate wouldn’t affect the Government’s stance on climate change. He has changed aviation tax so those that travel further pay more.

Pension credit has also risen, from £124 to £130 for single pensioners and from £189 to £198 for couples. Actual pensions have also been boosted to £95.25 from £90.70.

Pensioners will also receive a one-off payment of £60 on top of their £10 Christmas bonus. Couples will get £120. The £70 payment to pensioners will also go to disabled children.

Parents will get their promised increased child benefit payment in January, rather than April.