George Osborne’s ’emergency budget’ was predictable stuff. We knew that massive spending cuts were coming, despite the likes of President Obama warning strongly against vicious austerity measures.

But while others can focus on the brutality of the spending cuts, I will focus on the fact that this ‘emergency budget’ will make Britain’s tax system one of the most unfair in the western world. Capital gains tax (CGT) increased to a paltry 28 per cent, reforms to inheritance tax or the creation of a ‘wealth tax’ (used successfully in France and elsewhere) completely ignored, and a slight increase to the personal allowance that is made completely redundant by a 12.5 per cent hike in VAT.

The treasury’s budget document states that a net figure of £8 billion will be raised in taxes and Osborne had the gall to claim that his was a ‘progressive’ and ‘fair’ budget in which the rich would shoulder the majority of the burden. Presumably all this was to make his new Lib Dem colleagues feel a little less crestfallen about their numerous election promises that have been broken by this budget. Either way, it’s offensive nonsense.

The truth is that the vast majority of the tax rises comes from increasing VAT from 17.5 per cent to 20 per cent. Indeed, Osborne estimates this will raise £12.1 billion, dwarfing all other tax revenues added together. VAT is a deeply regressive tax because it hits the poorest hardest. Like the poll tax, the cleaner on £15,000 pays the same rate as the financier earning £150,000 – but proportionately far more of their income. I suppose we should be grateful for small mercies – the list of items exempted from VAT is unchanged – but it will push thousands of families into poverty, especially since child benefit payments are to be frozen.

Meanwhile, Osborne’s backbenchers, along with the Daily Mail, Express and Telegraph, and the big businesses who bankroll the Tory party have ensured that the CGT rise will be minimal – it will raise less than £1 billion. The increase will only affect those on the top tax rates and, at 28 per cent, is far lower than the 50 per cent top rate. On multi-million capital gains, the recipient will pay a rate only 8p higher than someone earning £7,495. So much for fairness.

Watching the horror unfold on TV, I was astonished by Osborne’s complacency and impressed by Harriet Harman’s pugnacious reply. But make no mistake – the battle lines are now clearly drawn. Our task now is to fight for jobs and fairness in the tax system – and ultimately to bring down this wretched rightwing government.