Anothereye-catchingcompromiseisthatnationalinsurancewillriseonlyforindividualsandnotforbusinesses。

Meanwhile,thegovernmentwillgraduallyworktowardsraisingtheincome-taxthresholdforlowearnersto£10,000。

Therewillbeanemergencybudgetwithintwomonths。

Sterlingandgiltstickeduponnewsofthedeal。

ALib-Labdealwasneverthoughtofaspracticalintermsofcuttingdebt,saidDavidOwenofJefferies。

Whatthecommentatorssaid

AsfarastheCityisconcerned,thisdeallookslikesomethingof…areversetakeoverbytheLibDems,saidRobertPestononBBC。

co。

uk。

Onbanksandtaxation,muchoftheagreementbearsaLibDemstamp。

TheyhavewatereddowntheToriescommitmenttodismantletheFinancialServicesAuthority,forinstance,whiletherewillbeanincreaseofcapital-gainstaxtobringitintolinewithincometax。

Thetopratewillbeatleast40%。

However,investorswillberelievedthattheTorieshavepushedthroughapolicyoftacklingthedeficitasearlyaspossible,including£6bnofcutsthisyear。

Itsclearthatcuttingadeficitof11%ofGDPisthecoalitionstoppriority,saidHugoDixononBreakingviews。

Thisisjustaswell,giventhatthemarketslossofconfidenceinEuropeansovereigndebtcouldprovecontagious。

Theemphasisonthedeficitshouldbolstersterling。

PlanstoinvolvetheBankofEnglandandanewOfficeofBudgetResponsibilityinvettingfiscalplansalsobodewell。

TheycouldproveanecessaryalibitoimplementmoresavagecutsthantheTorieshintedatduringthecampaign。

Giventhescaleofthechallengesahead,weneedagovernmentbuilttolast,saidtheFT。

CleggandCameronmustrisetotheoccasion。

Keypointsofthecoalitiondeal



Acceleratedreductionofthebudgetdeficit,including£6bnofcutsthisyear?

Nationalinsurancetoriseforindividuals,butnotforbusinesses?

Increaseinpersonalincome-taxallowances?

MansiontaxdroppedandToryinheritance-taxcutsshelved?

Independentcommissiontoexaminebreak-upofbigbanksandalevyonbanks?

Riseincapital-gainstaxfornon-businessassets?

Referendumonchangetovotingsystem?

TorymarriagetaxbreaktobeputtoaCommonsvote–theLibDemswillabstain?

ReferendumonanyfurthertransferofpowertoBrussels?

Tridenttoberenewed

NakedTextNakedText