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Brown unveils 'green' tax plans Brown unveils 'green' tax plans
(10 minutes later)
Gordon Brown has sought to establish his green credentials as he announced fuel and air duty increases in his 10th and possibly final pre-Budget report.Gordon Brown has sought to establish his green credentials as he announced fuel and air duty increases in his 10th and possibly final pre-Budget report.
He also said stamp duty on some "carbon neutral" new homes could be scrapped.He also said stamp duty on some "carbon neutral" new homes could be scrapped.
The chancellor said economic growth of 2.75% had beaten forecasts and he pledged to pay Child Benefit from the 29th week of pregnancy, from 2009. The chancellor said economic growth of 2.75% had beaten forecasts and outlined plans for future large scale investment in schools and colleges.
The Tories said Mr Brown was moving the UK in the "wrong direction" and mocked his claim to be "green".The Tories said Mr Brown was moving the UK in the "wrong direction" and mocked his claim to be "green".
Although fuel duty is going up 1.25p per litre from midnight and air passenger duty from £5 to £10 for most flights, Mr Brown rejected demands to re-link petrol prices to inflation.Although fuel duty is going up 1.25p per litre from midnight and air passenger duty from £5 to £10 for most flights, Mr Brown rejected demands to re-link petrol prices to inflation.
PRE-BUDGET REPORTPRE-BUDGET REPORT
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Mr Brown, who is widely expected to take over as prime minister next year, told MPs the UK was performing better than its major competitors, apart from the US.Mr Brown, who is widely expected to take over as prime minister next year, told MPs the UK was performing better than its major competitors, apart from the US.
He said the UK was enjoying the "longest period of sustained growth in our history".
Much of his speech, in the House of Commons, focused on investment in schools and training which he said was vital if the UK was to compete in the future with countries such as China and India.Much of his speech, in the House of Commons, focused on investment in schools and training which he said was vital if the UK was to compete in the future with countries such as China and India.
ChildrenChildren
Former director general of the CBI, Sir Digby Jones, has been made the government's skills envoy, said Mr Brown.Former director general of the CBI, Sir Digby Jones, has been made the government's skills envoy, said Mr Brown.
And there would be new cash for children who had fallen behind at schools and more basic skills training for adults.And there would be new cash for children who had fallen behind at schools and more basic skills training for adults.
HAVE YOUR SAY I want to see an increased winter fuel allowances for our pensioners Paul, London Send us your commentsHAVE YOUR SAY I want to see an increased winter fuel allowances for our pensioners Paul, London Send us your comments
There would also be an increase in the number of apprenticeships on offer for young people, he said.There would also be an increase in the number of apprenticeships on offer for young people, he said.
With all eyes on next summer's Comprehensive Spending Review, Mr Brown held off from making major policy announcements.With all eyes on next summer's Comprehensive Spending Review, Mr Brown held off from making major policy announcements.
But he unveiled further details of planned capital investments in schools in England. Separate announcements will be made for Wales, Scotland and Northern Ireland.But he unveiled further details of planned capital investments in schools in England. Separate announcements will be made for Wales, Scotland and Northern Ireland.
He pledged to increase annual spending to £10bn by 2010, which he said would match spending per-pupil on buildings in the state sector to that in the private sector.He pledged to increase annual spending to £10bn by 2010, which he said would match spending per-pupil on buildings in the state sector to that in the private sector.
Other measures include:Other measures include:
  • A further 300,000 households to be offered free insulation and free central heating.
  • A further 300,000 households to be offered free insulation and free central heating.
  • Consultation on bringing in bursaries worth £2,000 for looked-after children - such as those in local authority care - to go to university.
  • Consultation on bringing in bursaries worth £2,000 for looked-after children - such as those in local authority care - to go to university.
  • Bookstart scheme to be extended so children get more free books when they leave primary school.
    		•
  • Bookstart scheme to be extended so children get free books when they leave primary school.
  • Child Benefit to be paid to pregnant women from 29 weeks from April 2009.
  • An extra £600m for operations in Afghanistan and Iraq
  • An extra £600m for operations in Afghanistan and Iraq
  • An extra £84m for intelligence and counter-terrorism
  • An extra £84m for intelligence and counter-terrorism
    • Mr Brown said trend growth (the assumed rate) of the UK economy will be maintained at 2.75%, while the public finances will be based on a rate of 2.5%Mr Brown said trend growth (the assumed rate) of the UK economy will be maintained at 2.75%, while the public finances will be based on a rate of 2.5%
    And he forecast economic growth next year of 2.75% to 3.25%.And he forecast economic growth next year of 2.75% to 3.25%.
    'Vote for change''Vote for change'
    But shadow chancellor George Osborne said Mr Brown had "buried" the fact that he had downgraded his growth forecast for 2008, which would leave the UK with the largest structural deficit of any major European economy.But shadow chancellor George Osborne said Mr Brown had "buried" the fact that he had downgraded his growth forecast for 2008, which would leave the UK with the largest structural deficit of any major European economy.
    He said the chancellor's statement showed Britain was "moving further from the direction in which we need to go".He said the chancellor's statement showed Britain was "moving further from the direction in which we need to go".
    And he mocked Mr Brown's aspiration to become prime minister, saying he was equally responsible for the "failures" of the Blair years, including hospital cuts, failing schools and "destroyed" pensions.And he mocked Mr Brown's aspiration to become prime minister, saying he was equally responsible for the "failures" of the Blair years, including hospital cuts, failing schools and "destroyed" pensions.
    "The truth is this - Labour can only be new once and if the public want change they're going to have to vote for change," said Mr Osborne."The truth is this - Labour can only be new once and if the public want change they're going to have to vote for change," said Mr Osborne.
    'Clever schoolboy''Clever schoolboy'
    Vincent Cable, for the Liberal Democrats, said Mr Brown's economic figures were impressive "on the surface".Vincent Cable, for the Liberal Democrats, said Mr Brown's economic figures were impressive "on the surface".
    But until they were independently audited, Mr Brown would be like a "clever schoolboy who always gets 10 out of 10 in his tests because he has marked them himself".But until they were independently audited, Mr Brown would be like a "clever schoolboy who always gets 10 out of 10 in his tests because he has marked them himself".
    He said Mr Brown's legacy as a chancellor would be huge levels of personal debt, a failing education system, widening inequality and green proposals that fell far short of those recommended by the Stern report.He said Mr Brown's legacy as a chancellor would be huge levels of personal debt, a failing education system, widening inequality and green proposals that fell far short of those recommended by the Stern report.
    He also questioned how Mr Brown could avoid a public sector pay squeeze, with so many commitments to big capital projects such as the Olympics, ID cards and new schools.He also questioned how Mr Brown could avoid a public sector pay squeeze, with so many commitments to big capital projects such as the Olympics, ID cards and new schools.
    And green groups accused the chancellor of just "fiddling around the edges" instead of taking the "heroic" actions needed to halt the global threat of climate change.