Click here for the live blog of George Osborne’s repsonse!

4.24pm Alistair Darling sits down.

4.23pm Increases in child benefit will be brought forward to January, and at the same time pensioners will get a one off bonus of £60.

4.22pm Pension credit to increase next year. State pensions will increases with the highest rates of inflation this year.

4.20pm People saving through the "Savings Gateway" will get additional contributions from the Government.

4.19pm The expansion in vehicle excise duty bands will be introduced but they will be phased in and at a slower rate.

4.15pm £775 billion to be spent on new social homes.

4.13pm New lending panel to monitor loans to businesses and individuals; more government funding for free debt advice announced.

4.06pm It’s still important to protect the environment, he says, before announcing a reform to the air pasenger duty, which will vary depending in the length of the flight.

4.04pm Deferral of the increase in small business rate of corporation tax.

4.03pm £1 billion of credit to be offered to small businesses under a temporary small business finance scheme.

4.02pm HMRC will allow firms to spread their tax payments over a schedule they can afford.

4.00pm Spending will only rise by 1.2% in real terms after 2011. It had been 2.1%.

3.59pm Tory deputy chief whip Andrew Robathan told off by the Speaker for heckling.

3.59pm Duties on tobacco, alcohol and fuel to be raised in order to offset the cut in VAT.

3.58pm Confirmation of new 45% income tax rate from April 2011 for those earning £150,000 and over.

3.57pm From April 2011 there will be a 0.5% rise in all rates if NI contributions.

3.56pm The £120 increase in the personal income tax allowance will be permanent, and increased to £145 from next April.

3.54pm Confirmation of VAT being cut from 17.5% to 15% until the end of next year, coming into effect on December 1st. He asks for retailersvto pass it on as soon as they can.

3.53pm £3 billion of capital spending brought forward to next year.

3.51pm Announces an additional £5billion in efficiency savings.

3.50pm "Allowing borrowing to rise is the right choice for the country," he says.

Picture_43.46pm The fiscal rules will be temporarily suspended.

3.45pm There will be "significantly" lower tax revenues in the short to medium term.

3.43pm He says there will be a £20 billion fiscal stimulus between now and April 2010.

3.41pm Output will continue to fall for the next two quarters and will then recover, he claims, with inflation falling to 0.5% by the end of next year.

3.38pm Darling announces a review of arrangements in Crown dependencies and of international compensation arrangements on the wake of the collapse of the Icelandic banks. 

3.37pm Tory MP Michael Fabricant told off by the Speaker for too much heckling.

3.36pm Again, not sign of accepting blame for the problems as he says the roots of today’s problems are failings in the global banking system.

3.34pm He lays the blame for the beginnings of the current crisis on the US sub-prime market.

3.30pm Alistair Darling gets to his feet to deliver the Pre-Budget Report. He begins by talking of economic difficulties "not seen for generations".

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