Corporate tax to fall by 10% by April
Alistair Darling said the focus of the government in this year's budget will be stability during the current economic slow down.
Darling claimed the UK was in a better position than other countries to weather financial storms but added that the economy will grow this year from 1.75 to 2.25%.
As expected, he abolished a taper relief system in exchange for a single flat rate for capital gains tax. However, a 10% tax rate on gains up to £1m was introduced to protect Britian's small businesses and aspiring entrepreneurs.
He said funds available through the small firms loans guarantee will increase by 60% in the next year.
Darling said corporation tax will fall from 38% to 28% by April and he announced there will be simpler taxes for small companies.
Darling said the Government would be setting aside funding for testing proposals for road pricing that could have ramifications for pay as you drive schemes.
Darling said sites for 70,000 more houses have been indentified and the government will be working with the FSA to come out with a plan to help first time home buyers get on the property ladder.
In terms of the environment, Darling said laws will be introduced by 2009 to charge for using plastic bags unless supermarkets do it themselves. He has pledged £26m to make homes greener and said that new non-domestic buildings will have to become zero-carbon from 2019.
He also said the 2p increase in fuel duty will be delayed until October but the duty will rise by an additional 0.5p in 2010.
