For Alessandro Vecci, a financial consultant with a large City firm, the chancellor's decision to increase income tax on people earning more than £150,000 like himself comes as a severe blow.
"Income tax rates are outrageously high as it is," he says. "Everyone is trying to put more aside for the future and their families, but this really compromises it. I don't think increasing tax – or cutting tax relief on pension contributions [for high-earners] helps."
Like many professionals in the financial sector, Vecci, an Italian who moved to London four years ago, is concerned about his job security.
"No job is fully safe at this stage. I'm comfortable at the moment, but that stability is based on the market and the market is in difficulties. It worries me day-to-day that jobs are being affected; the situation isn't improving and companies are going down."
Vecci had hoped the government would use the budget as an opportunity to instil confidence in the public. But he is "quite disappointed" with what was said. "I'm a little doubtful as to whether more regulations in the banking sector will be effective. I suppose we will have to wait and see."
Vecci, 40, rents a property in central London for £1,700 a month, with his wife and one-year-old son and plans to buy a house soon. "Having money in the bank isn't really all that profitable," he says. "I can't see interest rates going up, and although the Isa allowance has been increased, it's still relatively low for cash amounts so it doesn't particularly compensate."
He is also hoping the government will not let the recession overshadow other issues, such as improving public transport and introducing green initiatives. "Sustainability is very important to me, but this needs to be reflected in public transport. Travel costs really add up, and I don't think the onus should be on the taxpayer to subsidise reduced fares."
