UK budget at a glance

ECONOMY

Lowest inflation for 30 years.

Economic growth was 3% in 2000.

Inflation forecast to be 2.5% in 2002 - 2.5% to remain inflation target.

National debt forecast to fall to 30.3% in 2001/2.

Debt interest payments in 2001-02 will be £1.5 billion lower than forecast in November, and £3.5 billion lower overall.

INVESTMENT

Government accepts Myners Report on pension fund investment policies allowing funds to invest in wider range of assets.

Consultation on Corporation Tax.

The UK will help set up a fund for global health developing new life-saving drugs and making existing drugs more widely available.

New tax credit for drug companies.

Long term Capital Gains Tax rate cut to 10p.

VAT returns to be based on annual company accounts.

The VAT threshold is raised to £54,000 for small business, and there will be a proposed lower rate for firms with a turnover of up to £100,000.

INCOME TAX

£1 billion a year tax cut, with the band of income taxed at 10p raised from £1,520 to £1,880. INHERITANCE TAX

The threshold for Inheritance Tax will be raised to £242,000.

CAR TAX

All vehicle duty rates frozen.

Lower tax for cars under 1.5 litres backdated to November - 70% of new cars to pay lower car tax.

Vehicle excise duty abolished on tractors from April.

FUEL

Duty on ultra low sulphur petrol cut by 2p a litre.

2p cut to unleaded petrol until June when supplies of ultra low sulphur petrol will be more widely available.

3p off ultra low sulphur diesel.

Duty on alternative fuels will be cut and duty on road fuel gases will be frozen until 2004.

DRINK

Duty on wine, beer and spirits frozen.

TOBACCO.

6p rise on cigarettes.

FAMILIES

New children's tax credit to be introduced in April and paid at £10 a week.

Maternity pay to be increased from £60 to £100 a week in 2003. Also extended from 18 weeks to 2003

Two weeks paid paternity leave.

Child tax credit for families with new babies to be set at a higher level.

EMPLOYMENT

More cash for training for ex-drug addicts.

Lone parents required to have interviews about work from 2002.

Families on Working Families Tax Credit to receive rise of £5 a week.

Disabled Persons Tax Credit raised by £5 a week.

More help with child care for working families. Childcare tax credit to rise to £135 a week for one child, £200 a week for two or more.

PENSIONERS

Chancellor confirmed increases of £5 for single pensioners and £8 for couples in the state pension.

Pensioners' tax allowances will be linked to earnings from 2003.

SPENDING

Public spending to increase by 3.7% a year by 2003-04.

SCHOOLS

Primary school head teachers will receive £13,000 with larger primaries receiving .63,000 in extra funding.

Secondary schools to get £68,000 and larger ones £115,000. £200 million to recruit extra teachers.

HEALTH

Hospital trusts to get between £500,000 and £1 million extra each year for three years.

Extra £135 million to recruit NHS staff.

DRUGS

New three year boost of more than £200 million to combat drugs problems.

BETTING

Betting duty abolished.

URBAN REGENERATION

£1 billion tax cuts to aid urban regeneration.

Stamp Duty will be abolished in designated areas, VAT on residential conversions will be cut to 5%, there will be 150% tax relief to clean contaminated land, and there will be allowances to renovate empty flats.

New grant to help church repairs.

MUSEUMS

VAT to be changed to give free museum entrance.

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