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Council tax is expected to rise by 5% a year to pay for local services including policing, documents in the Spending Review suggest.
The firm with 825 UK stores was sold for a "nominal" sum to a US investment firm.
The figures are for April which is also when a hike in employers' National Insurance contributions kicked in.
The measures announced in the Spending Review will not instantly transform the economy.
After the government outlined its spending plans, people with a range of incomes give us their reaction.