Speaking on the BBC’s Andrew Marr programme, he remained tight-lipped on many of his plans to be announced in Tuesday’s Budget although he confirmed there would be a rise in CGT on non-business assets.
Campaigners against the tax rise, which could increase to as high as 40-50%, will be hoping there will be a number of exemptions, with high profile figures like Sir Alan Sugar warning it would hurt business.
The BBC also understands plans will include Conservative election proposals to ease National Insurance for new businesses.
Osborne said the coalition had inherited “a truly awful financial situation” and he would set out a four-year plan to deal with it, including a levy on banks.
His Budget announcement is expected to be a bitter pill to swallow for public sector workers with Prime Minister David Cameron already saying their pay and pensions will have to be restrained.
Osborne also announced ex-Labour Work and Pensions Secretary John Hutton would head a commission into public sector pensions.
He said Hutton’s involvement would mean the commission would be independent and have cross-party input.
The Chancellor said the projected rise in the cost to taxpayers of public sector pensions was “unsustainable” and must be tackled.
Hutton’s review would come up with early steps by September, with full proposals in time for 2011’s Budget.
