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Breaking budget news

13:27 The people at the bottom of the income scale will pay proportionately less then people at the top, says the Chancellor. We have been tough but fair, he adds.

13:25 State pension to be re-linked to earnings.

13:23 Personal allowance on income tax increased by £1000 from April so £7470 can be earned before workers have to pay income tax. Higher rate income tax threshold remains the same.

13:21 Capital Gains Tax will rise to 28% for higher rate payers

13:18 The duty on cider will be reversed from the end of next month - in time to celebrate England’s World Cup progression.

13:15 From 4 Jan, VAT will rise to 20%. To fury from the Labour benches, the Chancellor says it is “unavoidable”.

13:14 Any one that sets up a business outside London and the South East in the next three years will be exempt from £5,000 of employer national insurance contributions for each of the first 10 new employees taken on.

Food, children’s clothing, newspapers and books will remain exempt over this Parliament.

13:17 No new duties on alcohol, tobacco and fuel.

13:13 Upgrade to the Tyne and Wear Metro among plans to boost economy in North and Midlands.

13:12 Cash saved in the digital switchover to be spent on broadband infrastructure for private sector.

13:10 Bank levy to be introduced in Jan 2011 which will generate £2.6bn-a-year - a move which is being matched today in Germany and France. It aims to reflect the risk that banks place on the economy.

13:08 No tax relief for video games industry

13:06 Corporation tax reduced next year by 1p to 27p in the pound, with three further annual 1% reductions, making it the lowest of any Western economy.

650,000 employees to be taken out of NI through a rise in April 2011 in the threshold at which employers pay it.

13:02 Some households receive £104,000 a year in housing benefit - to prevent such cases, the government will reset the system and reduce housing benefit spend by £1.8bn-a-year.

13:01 Child benefit will be frozen for three years.

13:00: Government will abolish the health and pregnancy grant from April 2011 and restrict the sure start maternity grant to first children.

12:58 From next year benefits will be indexed on the consumer price index rather than retail price index, saving £6bn per year.

12:55 Two year public sector pay freeze announced, with protection given to those earning less than £21,000 per year.

12:54 Government departmental budgets will be reduced by an additional £17bn by 2013/14.

12:50 Public borrowing will be £149bn this year, £116bn in 2011 and £89bn in 2012-13.

12:49 There will be no further reductions in capital spending totals in this budget. Also funding will be sourced through the offloading of Air Traffic Control Services and student loans book.

12:47 Debt interest will be £3bn lower by the end of this parliament than they would have been with the previous government, he predicts.

12:47 “We will not be joining the Euro in this parliament” - hence the scrapping of the Euro preparations unit.

12:45 “As a share of the economy, borrowing will fall from 10.1% this year to 1.1% by 2015/16.”

12:44 Lower spending rather than higher taxes is the way forward, he says.

12:44 “To follow the fiscal policy of the previous government would lead to higher interest rates and lower economic activity.”

1****2:42 Unemployment will peak this year at 8.1% and fall to 6.1% by 2015, the Chancellor predicts.

12:40 “Because we have taken a cautious approach we are set to meet our goals.”

“We are all in this together,” he says.

He says this Budget “pays for the past and it plans for the future”.

12:30 The Chancellor Mr Osborne is on his feet in the Commons chamber to deliver the emergency Budget 2010.

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