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| Darling puts up car and drink tax | Darling puts up car and drink tax |
| (30 minutes later) | |
| Big increases in duty on alcohol and high-polluting cars have been announced by Chancellor Alistair Darling. | Big increases in duty on alcohol and high-polluting cars have been announced by Chancellor Alistair Darling. |
| In his first Budget he put 4p on a pint of beer, 14p on a bottle of wine and 55p on a bottle of spirits. Duty on a packet of cigarettes is up 11p. | In his first Budget he put 4p on a pint of beer, 14p on a bottle of wine and 55p on a bottle of spirits. Duty on a packet of cigarettes is up 11p. |
| He announced higher road tax for the most polluting cars but delayed for six months a 2p rise in fuel duty. | He announced higher road tax for the most polluting cars but delayed for six months a 2p rise in fuel duty. |
| Mr Darling, who insisted the UK could "weather economic storms", also increased winter fuel payments. | Mr Darling, who insisted the UK could "weather economic storms", also increased winter fuel payments. |
| But Conservative leader David Cameron dismissed his Budget statement as a "a dire list of reviews and reannouncements". | But Conservative leader David Cameron dismissed his Budget statement as a "a dire list of reviews and reannouncements". |
| KEY MEASURES Delay 2p rise in fuel duty for six months6% increase in alcohol tax - with 2% annual rise for next four years4p on pint of beer, 3p on cider, 14p on wine, 55p on spirits11p on packet on 20 cigarettes, 4p on five cigars £950 higher first year rate of road tax for most polluting carsIncrease in green tax on flightsWinter fuel payment up to £250 for over-60s and to £400 for over-80sRequire supermarkets to charge for plastic bags if they do not scrap themMore cash to tackle child povertyHelp with rising energy costs for poorer families Key points at-a-glanceCar taxes rise | KEY MEASURES Delay 2p rise in fuel duty for six months6% increase in alcohol tax - with 2% annual rise for next four years4p on pint of beer, 3p on cider, 14p on wine, 55p on spirits11p on packet on 20 cigarettes, 4p on five cigars £950 higher first year rate of road tax for most polluting carsIncrease in green tax on flightsWinter fuel payment up to £250 for over-60s and to £400 for over-80sRequire supermarkets to charge for plastic bags if they do not scrap themMore cash to tackle child povertyHelp with rising energy costs for poorer families Key points at-a-glanceCar taxes rise |
| "The cost of living is going up and Labour is making it worse," added Mr Cameron. | "The cost of living is going up and Labour is making it worse," added Mr Cameron. |
| Liberal Democrat leader Nick Clegg said Mr Darling could have helped "the millions of hard pressed families who are feeling the pinch". | Liberal Democrat leader Nick Clegg said Mr Darling could have helped "the millions of hard pressed families who are feeling the pinch". |
| But instead he had delivered a "meagre tinkering budget which gives precious little help to the poor but maintains special treatment to the rich". | But instead he had delivered a "meagre tinkering budget which gives precious little help to the poor but maintains special treatment to the rich". |
| There were no further U-turns on capital gains tax or non-domiciled residents in Mr Darling's Budget statement. | There were no further U-turns on capital gains tax or non-domiciled residents in Mr Darling's Budget statement. |
| But he was forced to cut his forecasts for economic growth for this year by 0.25% - to between 1.75% and 2.25% - and he announced a big increase in government borrowing, which is set to go up by £14bn over the next two years. | But he was forced to cut his forecasts for economic growth for this year by 0.25% - to between 1.75% and 2.25% - and he announced a big increase in government borrowing, which is set to go up by £14bn over the next two years. |
| There will also be an increase in the overall tax burden over the next three years. | There will also be an increase in the overall tax burden over the next three years. |
| More help will be targeted at the elderly and poorest in society - although Labour still faces claims it has abandoned its target of halving child poverty by 2010. | More help will be targeted at the elderly and poorest in society - although Labour still faces claims it has abandoned its target of halving child poverty by 2010. |
| READ THE BUDGET IN FULL href="http://newsimg.bbc.co.uk/nol/shared/bsp/hi/pdfs/12_03_08_budget_speech_08.pdf" target="_new">Text of Commons statement [122KB] href="http://newsimg.bbc.co.uk/nol/shared/bsp/hi/pdfs/13_03_08bud08_completereport.pdf" target="_new">Complete report [4.06MB] Most computers will open this document automatically, but you may need Adobe Reader Download the reader here | |
| Child Benefit will rise from April 2009 to £20 week - a year earlier than planned and there was more help for families using pre-paid electricity meters. | Child Benefit will rise from April 2009 to £20 week - a year earlier than planned and there was more help for families using pre-paid electricity meters. |
| The over-60s will get £250 winter fuel payment instead of £200 and the over-80s will get £400 instead of £300. | The over-60s will get £250 winter fuel payment instead of £200 and the over-80s will get £400 instead of £300. |
| Mr Darling risked the anger of environmental groups by delaying a planned increase in fuel duty for six months - but motorists will face an April 2009 fuel duty rise of 1.84p a litre. | Mr Darling risked the anger of environmental groups by delaying a planned increase in fuel duty for six months - but motorists will face an April 2009 fuel duty rise of 1.84p a litre. |
| This year's Budget is a responsible Budget that will secure stability in these times of global economic uncertainty Alistair DarlingChancellor Analysis: The straight manCameron slams 'dire' BudgetClegg attacks 'green cop out' | This year's Budget is a responsible Budget that will secure stability in these times of global economic uncertainty Alistair DarlingChancellor Analysis: The straight manCameron slams 'dire' BudgetClegg attacks 'green cop out' |
| Plans to increase first-year road tax by £950 for the most polluting vehicles - and a general reform of Vehicle Excise Duty aimed at encouraging the production of greener cars - are also expected to bring in an extra £730m annually by 2010. | Plans to increase first-year road tax by £950 for the most polluting vehicles - and a general reform of Vehicle Excise Duty aimed at encouraging the production of greener cars - are also expected to bring in an extra £730m annually by 2010. |
| Mr Darling said he was setting aside new funding to develop road-pricing schemes. | Mr Darling said he was setting aside new funding to develop road-pricing schemes. |
| And he announced an increase in the amount airlines will have to pay to become "greener" - an extra 10% on plane duty in the second year of the new per-flight tax regime. | And he announced an increase in the amount airlines will have to pay to become "greener" - an extra 10% on plane duty in the second year of the new per-flight tax regime. |
| Drinkers will also bear the brunt of Mr Darling's spending plans with alcohol tax to go up by 6% above inflation - and then by 2% above inflation for each of the next four years, potentially boosting Treasury coffers by £635m annually by 2010. The first increases come into effect on Sunday. | Drinkers will also bear the brunt of Mr Darling's spending plans with alcohol tax to go up by 6% above inflation - and then by 2% above inflation for each of the next four years, potentially boosting Treasury coffers by £635m annually by 2010. The first increases come into effect on Sunday. |
| On the environment, he ordered stores to ban single-use carrier bags by next year or face legislation - and announced a review of carbon targets with aim of reducing emissions by 80% by 2050, up from 60%. | On the environment, he ordered stores to ban single-use carrier bags by next year or face legislation - and announced a review of carbon targets with aim of reducing emissions by 80% by 2050, up from 60%. |
| Inflation | Inflation |
| Setting out his Budget in the Commons, Mr Darling said: "This year's Budget is a responsible Budget that will secure stability in these times of global economic uncertainty." | Setting out his Budget in the Commons, Mr Darling said: "This year's Budget is a responsible Budget that will secure stability in these times of global economic uncertainty." |
| In other changes, stamp duty on shared-ownership homes will not be required until buyers own 80% of the equity in their home. | In other changes, stamp duty on shared-ownership homes will not be required until buyers own 80% of the equity in their home. |
| HAVE YOUR SAY Today's Budget only puts more debt onto tomorrow's generations Iain Connochie Send us your comments | HAVE YOUR SAY Today's Budget only puts more debt onto tomorrow's generations Iain Connochie Send us your comments |
| The child element of the child tax credit for families on low and middle income would increase by £50 a year above inflation. | The child element of the child tax credit for families on low and middle income would increase by £50 a year above inflation. |
| A working family with one child on the lowest income will gain up to £17 a week, lifting 150,000 children out of poverty, said Mr Darling. | A working family with one child on the lowest income will gain up to £17 a week, lifting 150,000 children out of poverty, said Mr Darling. |
| Mr Darling said inflation would rise before returning to its 2% target in 2009 and remain on target thereafter. | Mr Darling said inflation would rise before returning to its 2% target in 2009 and remain on target thereafter. |