 Transport Motorists will face an April 2009 fuel duty rise of 1.84p a litre - an increase previously announced. Mr Darling also announced further transport measures today, saying that if Britain was to remain competitive over the next 20 to 30 years, the Government had to take more radical steps to reduce congestion on our roads. He announced he was:
- Setting aside new funding to develop the technology which could underpinnational road pricing, inviting tenders to test this with the results expected next year
- New measures at Heathrow and other airports to speed up the time taken to get through immigration control, using biometric technology.
- Reforming capital allowances for business cars to increase the incentive to move to lower carbon-emitting cars
- Proposing, from April 2009, a major reform to Vehicle Excise Duty (car tax) to encourage manufacturers to produce cleaner cars and, by introducing new bands, there will be an incentive to encourage drivers to choose the least-polluting car
- Under this new regime, the most-polluting vehicles will face a VED rate of £425, while those emitting 150 grams or less of CO2 per kilometre will pay less
- Introducing from April 2010 for new cars a new first-year VED rate based on carbon dioxide emissions of the car
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Cars which emit less than the proposed 130 grams per kilometre European standard of carbon dioxide emissions will pay no car tax at all in the first year, but a higher first-year rate of £950 will be introduced for the most-polluting cars.
 Business and employment The Government pledged to boost enterprise by providing extra help to smaller firms and to do more to improve workers' skills under a package of Budget measures targeted at business. The chancellor said he wanted to make sure Britain remained one of the best countries in the world to do business and he would consult on "radical" new proposals to impose a limit on the amount of regulation that can be imposed by Whitehall departments.
- A new capital fund of initially £12.5 million to specifically encourage more women entrepreneurs.
- There were over 750,000 more small and medium sized firms than when Labour came to power in 1997, and the Government wanted to do more to help the sectors win extra business from the public sector.
- A goal for small and medium enterprises to win 30% of all public sector business in the next five years.
- An extra £60 million over the next three years to improve skills, tackle shortages of skilled workers and increase the number of apprenticeships.
 Environment The Chancellor warned that he would legislate next year to impose a charge on disposable plastic bags unless retailers took action to curb their use. However, his attempts to establish his "green" credentials were hampered by an announcement that a planned 2p increase in fuel duty due to come in April would be delayed.
- Non-domestic buildings such as offices and shops to be zero carbon from 2019. The details and timeline will be subject to consultation later this year but making these would make a significant contribution toward mitigating climate change resulting in a 75 million tonnes reduction in carbon dioxide emissions over the next 30 years.
- The chancellor has also announced his ambition for all public service buildings to be zero carbon from 2018. A task force will be set up to consider the how this ambition can be achieved.
- Target to reduce carbon emissions by 60% may be extended to 80% by 2050.
- £26 million next year to help homes cut their carbon footprint and energy consumption.
- Pre-payment meter customers need better deal from energy companies. Government committed to helping these customers.
- First carbon budget pledged alongside next year's Budget.
 Income tax "As the House will know, the basic rate of income tax will fall by two pence in April." But he added the Government will implement a transitional rate of 22%, to allow charities to continue to claim gift aid at the current rate.This would deliver £300 million worth of relief, he said.
 Families, poverty and the elderly Mr Darling said that his "responsible" measures would enable him to take further measures to cut child poverty.
- Housing and other benefits reformed further so families are better-off in work. Work capability assessments for all long-term incapacity benefit claimants by April 2010.
- Pledge to eradicate child poverty. Total of 600,000 fewer children in relative poverty and 150,000 fewer children in absolute poverty.
- £17 more a week for poor families with one child.
- From April 2009, child benefit rising to £20 for first child.
- A family with two children earning up to £28,000 a year will be £130 a year better off. A further £125 million to be spent over the next three years to help families.
- Savings Gateway launched nationwide by 2010, offering incentives to more than 8 million people on low incomes.
- Winter fuel payment for over-60s to rise from £200 to £250 and for the over-80s from £300 to £400.
 Education £10 million over five years to improve science teaching. Outside contributions will bring this figure up to £30 million. Other highlights:
- £60 million over three years to boost skills for those entering the labour market.
- £200 million to be invested in schools, bringing forward to 2011 Government target for all schools to have 30% of pupils achieving five A-C grade GCSEs.
 The Economy Growth and low inflation will be maintained, as the economy has expanded for a record 10 years. Turbulence which started in US has affected all markets worldwide. This poses "major risk" to world economies.
- Growth forecasts lowered worldwide, but British economy grew by 3%, fastest of any economy.
- This year, growth in the British economy will be between 1.75% and 2.25%, and growth will rise to 2.25%-2.75% in 2009 and 2.5%-3% by 2010.
- Inflation will rise before returning to 2% target in 2009.
- Debt this year forecast to be lower than PBR at 37.1%.
- Public sector investment forecast to rise to £37 billion in 2010.
 Alcohol and cigarettes Drink taxes increase by 6% above inflation from midnight Sunday, then by 2% for the next four years.
- 4p on a pint of beer, 3p on a litre of cider, wine up 14p a bottle, spirits up 55p a bottle.
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Packet of cigarettes up 11p from 6pm, five cigars up 4p.
 Housing 70,000 new affordable homes each year. Shared equity schemes extended, and stamp duty scrapped until owners have 80% equity in these homes. also:
- More flexible mortgages urged, offering 10, 20 and 25 year fixed rates.
- Sites identified for 70,000 more houses.
 Defence The Chancellor paid tribute to British troops and announced a £2 billion increase in spending on frontline troops.
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