But how will it affect car dealers?
Here, we’ve summarised the key points, and included links to the stories if you want to read more detail.
• VAT duty cut to 15 per cent
• Fuel duty rise by 2p per litre from 1 December 2008, and a further 1.84p per litre in April 2009.
• Road tax VED overhaul goes ahead in 2009, but with maximum increases of £5. In 2010, increases will be capped to £30.
• Road tax for cars registered between March 2001-March 2006, emitting over 225g/km of CO2, capped to £215 in 2009, and £245 in 2010.
• New car showroom tax will go ahead as planned in April 2009.
• £1bn Small Business Finance Scheme introduced.
• Tax relief for businesses with empty properties.
• 0.5 per cent National Insurance increase in 2011, for those earning more than £20,000.