He stressed that the pain of his austerity measures would be shared by "everyone" - but said all would share in the proceeds of the "enterprise-led recovery" that he promised would follow.
"Yes it is tough, but it also fair," said Mr Osborne of his first budget, adding: "Everyone will share in the rewards when we succeed. When we say that we are all in this together, we mean it."
He said that the Office for Budget Responsibility (OBR) now estimated growth this year of 1.2% and 2.3% next year - compared to its previous forecasts of 1.3% of 2.6%.
Giving her response to Mr Osborne's statement, acting Labour leader Harriet Harman poured scorn on the Liberal Democrats for providing a "fig leaf" for their Conservative coalition partners, arguing "this reckless Tory budget would not be possible without the Lib Dems".
Lib Dem 'fig leaf'
"The Lib Dems leaders have sacrificed everything they ever stood for to ride in ministerial cars and to ride on the coat tails of the Tory government," she added.
Plaid Cymru also lashed out at the Lib Dems, with Treasury spokesman Jonathan Edwards accusing party leader and Deputy Prime Minister Nick Clegg of sitting next to Tory leader David Cameron "like a nodding dog, agreeing with every word as VAT was raised".
Continue reading the main story
Public sector workers will be shocked and angry that they are the innocent victims of job cuts and pay freezes
Dave Prentis
Unison
"They are running out of major election policies on which to U-turn," he added.
The SNP welcomed some Budget measures, such as the freeze on whiskey duty and the restoration of the pensions and earnings link, but branded planned spending cuts "irresponsible".
In a message to Liberal Democrat supporters, Deputy Prime Minister Nick Clegg said the government had "no choice except to clear up the financial mess that Labour left us".
And he said the Budget had taken "difficult decisions in an honest and fair way and with the clear stamp of Liberal Democrat values running through it," citing examples including the restoration of the pensions and earnings link and the tax boost for the low paid.
'Breadline Britain'
Lib Dem Deputy Leader Simon Hughes, who has vowed to protect the party's core values, issued a statement in support of Mr Clegg after the Budget statement, saying it would protect the "needy and vulnerable".
So far only one Lib Dem MP, Bob Russell, has publicly suggested he might vote against the Budget, as the party had campaigned against VAT increases at the election because "the low paid disproportionately pay more".
He told BBC Radio 5 Live: "I am not at all happy. I need to discuss with colleagues how it is we have got into this situation."
Dave Prentis, general secretary of public service union Unison accused the coalition government of "declaring war" on public services, saying the Budget would "raise the spectre of breadline Britain" in some parts of the country.
"Public sector workers will be shocked and angry that they are the innocent victims of job cuts and pay freezes".
But CBI director general Richard Lambert called the Budget "the UK's first important step on the long journey back to economic health".
Green MP Caroline Lucas called Mr Osborne's statement a "budget for pointless austerity" full of cuts that were "neither unavoidable or fair".
But in an e-mail to Conservative supporters, Prime Minister David Cameron said: "In this emergency Budget I believe you have the measure of this government.
"Will it provoke debate? Certainly. Will it cost our coalition some popularity? Possibly. But is this the right thing to do - for the health of our economy, for the poorest in our society, for the future of our country? I passionately believe it is."
basically we the decent working class are ~~~~ed up the ..
. again
"Yes it is tough, but it also fair," said Mr Osborne of his first budget, adding: "Everyone will share in the rewards when we succeed. When we say that we are all in this together, we mean it."
He said that the Office for Budget Responsibility (OBR) now estimated growth this year of 1.2% and 2.3% next year - compared to its previous forecasts of 1.3% of 2.6%.
Giving her response to Mr Osborne's statement, acting Labour leader Harriet Harman poured scorn on the Liberal Democrats for providing a "fig leaf" for their Conservative coalition partners, arguing "this reckless Tory budget would not be possible without the Lib Dems".
Lib Dem 'fig leaf'
"The Lib Dems leaders have sacrificed everything they ever stood for to ride in ministerial cars and to ride on the coat tails of the Tory government," she added.
Plaid Cymru also lashed out at the Lib Dems, with Treasury spokesman Jonathan Edwards accusing party leader and Deputy Prime Minister Nick Clegg of sitting next to Tory leader David Cameron "like a nodding dog, agreeing with every word as VAT was raised".
Continue reading the main story
Public sector workers will be shocked and angry that they are the innocent victims of job cuts and pay freezes
Dave Prentis
Unison
"They are running out of major election policies on which to U-turn," he added.
The SNP welcomed some Budget measures, such as the freeze on whiskey duty and the restoration of the pensions and earnings link, but branded planned spending cuts "irresponsible".
In a message to Liberal Democrat supporters, Deputy Prime Minister Nick Clegg said the government had "no choice except to clear up the financial mess that Labour left us".
And he said the Budget had taken "difficult decisions in an honest and fair way and with the clear stamp of Liberal Democrat values running through it," citing examples including the restoration of the pensions and earnings link and the tax boost for the low paid.
'Breadline Britain'
Lib Dem Deputy Leader Simon Hughes, who has vowed to protect the party's core values, issued a statement in support of Mr Clegg after the Budget statement, saying it would protect the "needy and vulnerable".
So far only one Lib Dem MP, Bob Russell, has publicly suggested he might vote against the Budget, as the party had campaigned against VAT increases at the election because "the low paid disproportionately pay more".
He told BBC Radio 5 Live: "I am not at all happy. I need to discuss with colleagues how it is we have got into this situation."
Dave Prentis, general secretary of public service union Unison accused the coalition government of "declaring war" on public services, saying the Budget would "raise the spectre of breadline Britain" in some parts of the country.
"Public sector workers will be shocked and angry that they are the innocent victims of job cuts and pay freezes".
But CBI director general Richard Lambert called the Budget "the UK's first important step on the long journey back to economic health".
Green MP Caroline Lucas called Mr Osborne's statement a "budget for pointless austerity" full of cuts that were "neither unavoidable or fair".
But in an e-mail to Conservative supporters, Prime Minister David Cameron said: "In this emergency Budget I believe you have the measure of this government.
"Will it provoke debate? Certainly. Will it cost our coalition some popularity? Possibly. But is this the right thing to do - for the health of our economy, for the poorest in our society, for the future of our country? I passionately believe it is."
basically we the decent working class are ~~~~ed up the ..
. again
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