Budget 2010: The chancellor's speech in full

Mr Deputy Speaker, this Budget takes place as the UK economy is emerging from the deepest global recession for over 60 years.

It has been a testing time which has required Governments across the world to make difficult choices and take unprecedented actions.

We had to decide whether to intervene to rescue the financial system or stand on the sidelines.

Whether we should support the economy, business and families or let the recession take its course.

The record shows the right calls were made.

Global recession has not turned into depression.

Unemployment here in the UK has not risen as much as was feared.

Borrowing, as I will explain later, is lower than forecast last year.

But the recovery is still in its infancy. There are equally tough choices ahead.

Choices that will shape our economy and society for decades to come.

The task now is to bring down borrowing in a way which does not damage the recovery or the front-line services on which people depend.

The challenge now is how we invest as a country to support the industries of the future and allow the talent of the British people to flourish.

At the heart of our decisions is a belief that Government should not stand aside, but instead help people and business achieve their ambitions.

My Budget today builds on this belief and our confidence in our country.

This will be a Budget to secure the recovery, tackle borrowing and invest in our industrial future.

It will continue targeted support for businesses and families where and when it is needed.

It will set out how we stick to our plan to halve the deficit within four years.

Mr Deputy Speaker, our economy is at a cross-roads.

Having come through this global recession, this Budget will set out a route for the country to long-term prosperity.

At its heart is a £2.5bn one-off growth package – to help small business, promote innovation, invest in national infrastructure and key skills.

This package will be paid for by switching spending from within existing allocations and the extra proceeds from the tax on bank bonuses – in line with a Budget that is balanced over the period.

Mr Deputy Speaker, the world is still recovering from the severest economic shock of our lifetime.

Despite what some try to suggest, the recession has not been restricted to the UK, nor did it begin here.

A storm which began in America spread rapidly around the world.

It was the biggest test countries had faced in modern times.

When I presented my Budget a year ago, world leaders had just met in London to agree unprecedented action to rescue the global economy.

Governments of all political colours acted to stabilise their banking systems and to use fiscal and monetary policy to boost demand and protect jobs.

Not everyone here supported the action taken. But with hindsight, it is even clearer that the right calls were made.

Economic disaster was averted.

Growth has begun to return across the major world economies.

The prospects for the global economy are much more positive than a year ago.

But Mr Deputy Speaker, there is nothing pre-ordained about continued recovery.

There are still uncertainties. Financial markets are febrile. Oil prices have increased by over 50 per cent.

Bank credit, while improved, still remains weak in many parts of the world.

Confidence has not fully returned to either businesses or consumers.

And this is particularly the case in Europe, which is the market for 60 per cent of our exports.

Germany saw no growth last quarter.

It has been a testing time which has required Governments across the world to make difficult choices and take unprecedented actions.

We had to decide whether to intervene to rescue the financial system or stand on the sidelines.

Whether we should support the economy, business and families or let the recession take its course.

The record shows the right calls were made.

Global recession has not turned into depression.

Unemployment here in the UK has not risen as much as was feared.

Borrowing, as I will explain later, is lower than forecast last year.

But the recovery is still in its infancy. There are equally tough choices ahead.

Choices that will shape our economy and society for decades to come.

The task now is to bring down borrowing in a way which does not damage the recovery or the front-line services on which people depend.

The challenge now is how we invest as a country to support the industries of the future and allow the talent of the British people to flourish.

At the heart of our decisions is a belief that Government should not stand aside, but instead help people and business achieve their ambitions.

My Budget today builds on this belief and our confidence in our country.

This will be a Budget to secure the recovery, tackle borrowing and invest in our industrial future.

It will continue targeted support for businesses and families where and when it is needed.

It will set out how we stick to our plan to halve the deficit within four years.

Mr Deputy Speaker, our economy is at a cross-roads.

Having come through this global recession, this Budget will set out a route for the country to long-term prosperity.

At its heart is a £2.5bn one-off growth package – to help small business, promote innovation, invest in national infrastructure and key skills.

This package will be paid for by switching spending from within existing allocations and the extra proceeds from the tax on bank bonuses – in line with a Budget that is balanced over the period.

Mr Deputy Speaker, the world is still recovering from the severest economic shock of our lifetime.

Despite what some try to suggest, the recession has not been restricted to the UK, nor did it begin here.

A storm which began in America spread rapidly around the world.

It was the biggest test countries had faced in modern times.

When I presented my Budget a year ago, world leaders had just met in London to agree unprecedented action to rescue the global economy.

Governments of all political colours acted to stabilise their banking systems and to use fiscal and monetary policy to boost demand and protect jobs.

Not everyone here supported the action taken. But with hindsight, it is even clearer that the right calls were made.

Economic disaster was averted.

Growth has begun to return across the major world economies.

The prospects for the global economy are much more positive than a year ago.

But Mr Deputy Speaker, there is nothing pre-ordained about continued recovery.

There are still uncertainties. Financial markets are febrile. Oil prices have increased by over 50 per cent.

Bank credit, while improved, still remains weak in many parts of the world.

Confidence has not fully returned to either businesses or consumers.

And this is particularly the case in Europe, which is the market for 60 per cent of our exports.

Germany saw no growth last quarter.