1.21pm Alistair Darling sits down.

1.20pm ISA limits to be increased.

1.19pm Increase in statutory redundancy pay from £350 to £380 a week. Promise that pensions will rise in real terms. Winter fuel allowance to be maintained at higher level.

1.16pm Child element of child tax credit to increase by £20. Extra money in child trust funds for the disabled children.

1.15pm £535million in support for off-shore wind farms. Combined heat and power technology to be exempt from the climate change levy.

1.13pm £435 million to promote energy efficiency in homes, businesses and public buildings.

1.10pm Extra funding to expand the broadband network announced.

1.06pm £500 million of support for house-building; £50 million investment in modernisation of  accommodation for the armed forces. £100 million towards local authorities building energy efficient housing.

1.05pm Public spending growth reduced to 0.7% from 1.1% in 2011-12.

1.03pm Local health and schools investments will continue. £9 billion of efficiency savings by 2013-14. £1 billion to combat climate change.

1.02pm Alcohol duties up 2% at midnight; tobacco duty up 2% at 6pm; fuel duty expected to rise by 2p a litre from September.

1.00pm No increase in income tax this year, but additional steps are "right" as the economy improves. 45p rate on £150k incomes and above will be increased to 50p. Those on £100k will not benefit from increase in thresholds.From April 2011, pension tax relief will be cut for those on over £150k.

12.58pm National debt will be 79% of GDP in 2013-14 and it will begin to fall in 2015-16.

12.57pm Borrowing will be 11.9% of GDP next year – £175 billion; and then £173 billion in 2010-11.

12.55pm "Countries cannot deflate their way out of recession". Fiscal easing of 0.5% this year.

12.54pm Allowing borrowing to rise is the "right thing to do".

12.53pm Public finances: tax revenues will not be up "for some years".

12.52pm For the car industry, a scrappage scheme will be introduced with a £2,000 discount for those buying new cars when trading in for a car more than ten years old – until March 2010.

12.51pm Help for companies with cash flow problems: loss making companies to be able to reclaim tax on profits made in previous 3 years.

12.49pm Stamp duty holiday on properties under £175k continues until the end of the year.

12.48pm From January, there will be a job or training place for all young people who have been out of work for 12 months. He announced additional funding for training and subsidies for those in sectors with strong future demand and more money for additional places in sixth forms.

12.46pm An extra £1.7 billion of funding for Job Centre Plus, and additional support for people out of work for more than 12 months.

12.44pm It's not in any government's power to prevent all job losses.

12.42pm From 2011 he forecasts growth of 3.5%. Inflation expected to reach 1% by the end of this year. RPI inflation to fall to -3% by September, falling back to 0% next year.

12.41pm 1.25% growth predicted in 2010.

12.40pm The economy contracted 1.6% in last quarter of 2008 and he expects it to do the same in the first quarter of this year, with his forecast for the year being -3.5%.

12.40pm Before the recession employment was at an all time time, but "no country can insulate itself from the worldwide downturn."

12.39pm "There are no quick fixes, there is no overnight solution".

12.36pm The help announced in the PBR "is coming through now", he claims.

12.35pm World economy to contract this year for the first time since WWII.

Picture 712.34pm The economy will start growing again "towards the end of this year".

12.32pm The budget will "provide jobs and spread prosperity" in the "most serious economic turmoil for 60 years" and not repeat the mistakes of the 1930s.

12.31pm The Deputy Speaker has taken the chair for the Budget statement. Alistair Darling gets to his feet.

Jonathan Isaby

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