Budget 09: The highlights

Economy

The economy to shrink 3.5% in 2009, but grow by 1.25% in 2010

Growth expected to pick up in 2010, expanding by 1.25%.

Borrowing to rise to £175bn in 2009, followed by further rises of £173bn, £140bn £118bn and £97bn the following years

CPI inflation to drop to 1% by the end of the year

Personal taxation

A new income tax rate of 50 per cent will apply to people earning over £150,000

The income tax personal allowance will be reduced to those with incomes over £100,000

Alcohol, Tobacco and Fuel

Alcohol taxes go up 2% at midnight - or 1p a pint

Tax on tobacco up by 2% from 6pm - or 7p on a pack of 20 cigarettes

Fuel duty to rise by 2p per litre from September, followed by 1p a litre over inflation each April for four years

Public savings

£1bn raised from the closure of identified tax avoidance loopholes over the next three years.

Further £9bn generated in efficiency savings

Public spending cut from 1.1% in 2010 to 0.7% in 2011-12

Business aid

Loss-making companies will be able to reclaim more taxes paid in the last three years until November 2010

£750m strategic investment fund to help emerging technologies and regionally important sectors

Main business capital allowance rate doubled to 40%

Pensions and savings

Basic state pension will increase by at least 2.5%

A rise of £100 to over-80s households and £50 to over-60s households in 2009/10, via the Winter Fuel Payment

Tax relief on pensions contributions will be restricted for those earning £150,000 and over

The annual investment limit for ISAs rises to £10,200 of which £5,100 can be saved in cash. These higher limits will be available to over-50s from 6 October 2009 and to everyone from 6 April 2010.

Housing and homeowners

The Stamp Duty land tax threshold on residential properties costing £175,000 or less will be extended until 31 December 2009.

Another £80m for the shared equity mortgage scheme

£500m for stalled housing projects

Motoring and transport

A temporary car scrappage scheme - it offers consumers £2,000 off the cost of a new vehicle to replace a vehicle more than 10 years old.

Employment and training

18-24 year olds who have been unemployed for 12 months will be guaranteed a job, training or a work placement.

An extra 54,500 places will be created in the next academic year for 16 and 17 year olds who wish to take them up.

The environment

Over £1.4 billion of support will be targeted at in the low-carbon sector.

£435m being made available for energy efficient schemes for homes, businesses and public buildings

£405m being made available to encourage low-carbon energy and advanced green manufacturing