HERE is a live commentary on the pre budget speech. Alistair Darling is currently speaking to the House of Commons. This is what he’s saying, reported live.
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2mins: ‘Measures will help us return to growth quicker,’ says chancellor.
3mins: ‘Unprecedented increases in fuel and energy prices have hurt world economy.’
4min: ‘Europe in recession since April. This is a global crisis but World Bank says economy will double in size in the next two decades.’
5min: ‘Route of problems is the global banking system.’
6min: ‘We’re taking lead for compensation on banking problems. Because of action no retail depositers in British banks have lost out.’
7min: ‘We need restore confidence in banking system.’
8min: ‘There are half a million unfilled vacancies in the British economy.’
9min: ‘We are being affected directly by globally recession because of the size of our economy.’
10min: ‘Inflation expected to continue to fall which is why the Bank of England has been able to cut interest rates. But we need action now to boost economic activity to help us emerge quicker and stronger.’
11min: ‘Output will continue to fall for the first two quarters next year but to recover after that because of this pore budget report. Lower interest rates will help.’
12min: ‘Growth of 1.5 to 2 per cent in 2010 predicted.’
14min: ‘I will do whatever it takes to support people through these difficult times. Package to help will cost £20bn between now and 2010 – equal to 1 per cent of GDP.’
15min: ‘This report will do all we can to support the economy.’
17min: ‘Tax revenues have fallen across the world as company profits fall so do company tax returns. Less income tax and less stamp duty have also hit tax revenues.’
18min: ‘Borrowing £78bn 08/09 and £118bn 09/10.
19min: ‘If we do nothing we’d have a longer recession. Allowing borrowing to rise is the right choice for the country.’
20min: ‘Challenge is to continue to deliver services with value for money.’
23min: Now to the measures that will help the economy.
24min: £3bn brought forward for capital spending on motorways and schools.
25min: Spending will put money in the economy. Need to put money in the economy immediately too.
26min: Much needed injection of spending – VAT cut until the end of next year. From 17.5 per cent to 15 per cent.
27min: 10p tax compensation made permanent. April 2011 National Insurance rate will go UP by half a per cent!
28min: Highest earners from April 2011 on income over £150k rate to be taxed at 45 per cent. This is top one per cent of UK earners.
29min: ‘We will all benefit fairly from these exceptional measures. They will ensure money is flowing into the economy when it is needed most.’
30min: ‘Small and medium firms are the engine of our economy. They are facing difficulties with cash flows and credit. I want to help them. I will improve their access to credit.’
32min: Empty commercial property relief extended.
33min: Credit available through the government to small businesses in loan guarantees. £1,000 to £1m loans available. Credit for SMEs.
34m: Real support for all types of business. Defer increase in small companies corporation tax. Losses up to £50,000 can be ofset against profits made in last three years.
36m: Tax breaks on foreign dividends for large and medium firms.
38m: £100m mnore made available to insulate homes.
39m: Planned air passenger duty changes taxed. But still no mention of the VED car tax changes mooted.
40m: Renewable energy will play increasing role in the future.
41m: ‘I will take steps to improve supply of mortgages.’
43m: ‘Repossession should be last resort. Lenders have agreed they will wait three months after arrears before entering into repossession.’
44m: State help for people with mortgages worth up to £200,000. Government will work on a way of improving supply of mortgages.
49m: MOTORISTS: Car tax bands delayed to April 2010 – not 2009 as planned.
51m: MOTORISTS: Tax rises on most polluting cars to be capped at £30.
52m: Pension credit to increase. Child tax credit to increase by £75 above earnings in April. And they’ll get it in January – three months early.
54m: ‘These are exceptional times and require exceptional measures. It requires action now. We’re helping business and home owners and it’s all only possible as we’ve taken deliberate decision to help people.’
55m: Chancellor sits down and the Tories begin to respond.
We’ll be publishing reaction to the pre-budget speech soon.
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