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| Darling unveils 50% top tax rate | |
| (20 minutes later) | |
| Alistair Darling has announced a new top tax rate of 50% for those earning more than £150,000 from next April. | |
| The chancellor is trying to save the public finances after announcing bigger than expected borrowing of £175bn. | |
| The UK economy will shrink by 3.5% - the worst in modern times, he said in his Budget but he said he expected it to pick up at the end of the year. | |
| He also announced a scrappage scheme of £2,000 for people trading in cars older than 10 years for new ones. | |
| The move is aimed at helping the floundering car industry as part of a wider package to boost industry. | The move is aimed at helping the floundering car industry as part of a wider package to boost industry. |
| KEY POINTS 50% tax rate for earnings over £150,000Growth forecast revised downBorrowing increased£15bn 'efficiency savings'Clawing back tax relief on top earners' pension £2bn help for young unemployed£1bn to boost housing marketCar scrapping scheme Watch live: Video and text At-a-glance: Budget 2009 | |
| The new top rate of tax is a change of plan from the pre-Budget report last year in which he had proposed the new tax rate being 45%. | |
| It is also being brought in a year earlier than planned "to pay for additional support for people now". | |
| Mr Darling says the Budget measures would steer the UK through the "worst global economic turmoil" in 60 years or more. | Mr Darling says the Budget measures would steer the UK through the "worst global economic turmoil" in 60 years or more. |
| He began his speech by saying the Budget would provide help to get people back into work quickly and support businesses and homeowners facing problems. | He began his speech by saying the Budget would provide help to get people back into work quickly and support businesses and homeowners facing problems. |
| Everyone under the age of 25 out of work for 12 months or more will be offered a job or a place on a training scheme. In addition, the government will create or support up to 250,000 jobs in deprived areas. | Everyone under the age of 25 out of work for 12 months or more will be offered a job or a place on a training scheme. In addition, the government will create or support up to 250,000 jobs in deprived areas. |
| Mr Darling also announced an expansion of sixth form and further education places. | Mr Darling also announced an expansion of sixth form and further education places. |
| There will be measures to support investment in the growth and green industries of the future and the government will work to rebuild Britain's financial services. | There will be measures to support investment in the growth and green industries of the future and the government will work to rebuild Britain's financial services. |
| 'Too weak' | 'Too weak' |
| Conservative leader David Cameron said the Budget represented a "day of reckoning" for the government, proving that its economic policies had not worked. | Conservative leader David Cameron said the Budget represented a "day of reckoning" for the government, proving that its economic policies had not worked. |
| He told BBC News: "We've got to get debt under control, we've got to start to close that deficit, and... I think this government is just too weak to do the job." | He told BBC News: "We've got to get debt under control, we've got to start to close that deficit, and... I think this government is just too weak to do the job." |
| Liberal Democrat Treasury spokesman Vince Cable said people needed "a very clear statement - without spin - about exactly what the situation is in the economy". | Liberal Democrat Treasury spokesman Vince Cable said people needed "a very clear statement - without spin - about exactly what the situation is in the economy". |
| There was grim news on the jobs front ahead of the Budget, with unemployment figures showing the number of people looking for work has reached 2.1 million - its highest level since Labour came to power in 1997. | There was grim news on the jobs front ahead of the Budget, with unemployment figures showing the number of people looking for work has reached 2.1 million - its highest level since Labour came to power in 1997. |
| Car scrapping | Car scrapping |
| Meanwhile, official figures showed that public borrowing soared to a record £90bn in the last financial year - almost 6.2% of national income and far higher than the £78bn prediction made by Mr Darling in his pre-Budget report last November. | Meanwhile, official figures showed that public borrowing soared to a record £90bn in the last financial year - almost 6.2% of national income and far higher than the £78bn prediction made by Mr Darling in his pre-Budget report last November. |
| Mr Darling is expected to plug part of the gap in the public finances with £15bn of "efficiency" cuts from 2010 - after the next election - provoking anger from public service unions. | Mr Darling is expected to plug part of the gap in the public finances with £15bn of "efficiency" cuts from 2010 - after the next election - provoking anger from public service unions. |
| He could also claw back tax relief on the pensions of top earners, although this is only likely to affect those on £100,000 a year or more. | He could also claw back tax relief on the pensions of top earners, although this is only likely to affect those on £100,000 a year or more. |
| A £1bn package aimed at boosting house sales and house building is expected to include a four-month extension on the stamp duty "holiday" on homes costing below £175,000. | A £1bn package aimed at boosting house sales and house building is expected to include a four-month extension on the stamp duty "holiday" on homes costing below £175,000. |
| From 1pm we will have tax, pension and personal finance experts available to answer your questions about the Budget and how it affects you. If you have a question you can send it to us using the form below: | From 1pm we will have tax, pension and personal finance experts available to answer your questions about the Budget and how it affects you. If you have a question you can send it to us using the form below: |
| The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions | The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |