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Budget live: Key points from the Chancellor

The Chancellor delivered his Budget today - here are the highlights as they happened:

Chancellor Alastair Darling: Borrowing is lower than forecast last year. But the recovery is still in its infancy.

The crisis in the world economy started in the banking sector. The unpresidented decision to nationalise a bank was controversial. I believe this judgment has proved correct.

Northern Rock is returning to normality according to the latest figures. We will sell our shares to the benefit of the tax payer.“

Our economy is at a crossroads and this Budget will set out “a route to long-term recovery”, Mr Darling says. At its heart is a package to invest in small and medium-sized businesses and jobs, he adds.

Over next five years a million more people will have access to bank accounts.

As banks return to profit the sense of urgency must not diminish.

UK economy has retracted 6% during the recession. No Government could prevent all jobs being lost. Government has the responsibility to reduce the effect of the recession.

Unemployment benefit claim count today is still lower than the rate we inherited in 1997 from the Tory government.

As global storm hit our country we responded with funding to help people find work quicker.

It’s clear our approach is making a difference.

This year 440,000 houses have benefited from extra help from us by an average £38 per week.

Many first time house buyers find it hard to get a mortgage. I will double the stamp duty limit from £125,000 to £250,000. This means nine in ten first time buyers will pay no stamp duty. This will be countered by 5% increase in duty on houses over £1m in value.

For workers over 60, the chancellor says he will cut the number of hours they need to work to qualify for working tax credits.

He also says the government is looking into scrapping the c****ompulsory retirement age. He announces that that the guaranteed offer of work or training for those under 24 who are unemployed for more than six months will be extended until March 2012.

The ISA limit will be raised from £7,200 to £10,200 and will increase each year after that in line with inflation.

Mr Darling says he has revised downwards slightly the growth forecast for 2011 to between 3% and 3.5% to bring it more in line with predictions from the City. Growth is predicted at 1 to 1.5% for 2010.

The planned 3p increase in f****uel duty will be staged to soften the blow. It will go up by 1p in April, another 1p in October and a final 1p in January 2011.

The country’s borrowing will be £167bn this year - £11bn lower than the earlier forecast of £178bn.

Overall debt will be £100bn lower by 2013/14 than he predicted at last year’s Budget.

Chancellor says there will be no further announcements on VAT, income tax or National Insurance.

Inheritance tax will be frozen for four years.

Duty on cider will increase by 10% above inflation from Sunday. Duty on beer, wine and spirits will increase as planned from midnight on Sunday

Over £4bn next year for operations in Afghanistan

Tobacco duty will increase from today by 1% above inflation.

Number of civil servants in London to be reduced by a third: 1,000 from ministry of justice will be relocated out of London

Public pay settlement****s will be held at a maximum of 1% for the two years.

Over the next year I have agreed that RBS and Lloyds will provide £94m of new business loans with half of that going to SMEs.

From next year, the most expensive properties will be excluded from the housing benefit calculation in each area.

A new credit adjudicator will fast-track complaints from smaller firms who say they have been unfairly denied credit.

Faster licensing process for new banks to boost competition.

Increase by 15% the number of central government contracts going to SMEs.

A new national investment corporation - UK Finance For Growth - will streamline and improve government help to SMEs.

£100m to pay for repairs to local roads.

£200m to pay for improvements to the motorway network.

£60m to develop ports to host manufacturers of offshore wind turbines.

A £2bn green infrastructure fund which includes £1bn of public cash matched with private funds.

£270m in 2010 / 2011 to help universities create 20,000 more university places.

Every new graduate will receive personal help to boost their career prospects.

Tax agreements overseas and impending tax information exchange agreements with three additional countries - Dominca, Grenada and Belize - will further boost the drive to cut tax avoidance. Deals to be signed within a few days.

£4 a week increase in child tax credit from 2012.

Pensioners eligible for £132.60 a week from April.

Higher winter fuel payment guaranteed for another year.

This was posted in Bdaily's Members' News section by Ruth Mitchell .