"Britain still spends too much, borrows too much. You only have to look at the crisis unfolding in Greece as I speak, to realize that if a country's not in control of its borrowing, the borrowing takes control of the country," Osborne said.
He also pledged to tackle tax evasion, ease the tax burden on workers, and lift the threshold on the 40-percent tax bracket.
Osborne also cut corporation tax from 20 percent to 19 percent in 2017 and 18 percent by 2020, claiming that the measures send out the message that the U.K. is "open for business".
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His words meant with a broadly positive response from the Institute of Directors (Iod), a U.K. business lobbying group.
"In today's Budget, George Osborne has offered business a new deal on employment," IoD Director-General Simon Walker said in a news release after Osborne spoke.
"Introducing a national living wage at a significantly higher level than the minimum wage was a dramatic announcement, but in return, companies have been provided with a cut to corporation tax and an increase in the employment allowance. We should not understate the boldness of this move, and many businesses will have been taken by surprise, but we accept that after several years of slow wage rises, now is the time for companies to increase pay," Walker added.
The tax-free personal allowance will be hiked to £11,000 ($16,900) next year from £10,600 and the threshold for taxpayers on the higher 40 percent tax rate will be lifted from £42,385 in this tax year to £43,000 in 2016-17—on its way to the £50,000 target.
This measure will mean that around 29 million people will pay less tax, Osborne said.
The country's welfare bill should be cut by £12 billion, mainly taken from tax credits, housing benefits and a lower cap on welfare as well as introducing a "national living wage" of £9 an hour by 2020.
Plus, young people aged 18-21 years will no longer be automatically entitled to housing benefit, which, along with other reforms, is set to save the country £9 billion.
"Those who can work will be expected to work and take it when it is offered," Osborne said on Wednesday,