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Brown set to deliver 11th Budget Brown set to deliver 11th Budget
(about 1 hour later)
Gordon Brown is preparing to deliver his 11th Budget, which is expected to be his last as chancellor. Gordon Brown is preparing to deliver his eleventh Budget, which is thought likely to be his last as chancellor.
Mr Brown, the favourite to succeed Tony Blair as prime minister this year, is expected to focus on environmental measures and education. Mr Brown, the favourite to succeed Tony Blair as prime minister this year, is expected to pledge an extra £1bn to fight child poverty.
Alongside the Budget, he will release the final Lyons report into local government funding in England. His speech, from 1230 GMT, is expected to set out education spending plans - and will be watched for any changes to business taxes and stamp duty on homes.
On Tuesday, senior ministers rallied round Mr Brown, accused by a former colleague of "Stalinist ruthlessness". The Tories said Britain had become "much more over-taxed" under Mr Brown.
Mr Brown is expected to unveil plans for tax breaks for homes which use solar panels and wind turbines and a hike in road tax for the worst "gas guzzlers". Car duties
There have been reports the chancellor might unveil plans for tax breaks for homes which use solar panels and wind turbines and a rise in road tax for the worst "gas guzzlers".
Some reports suggest that the duty on the least fuel-efficient cars will double to about £400 a year.Some reports suggest that the duty on the least fuel-efficient cars will double to about £400 a year.
BUDGET POSSIBILITIES Tax breaks for green homeownersStamp duty threshold raisedInheritance tax tightenedExtra money to tackle child povertyState pension increase (already announced)ISAs to continue beyond 2010 (already announced) What has Brown achieved The Budget: What we know BUDGET POSSIBILITIES Tax breaks for green homeownersStamp duty threshold raisedInheritance tax tightenedExtra money to tackle child povertyState pension increase (already announced)ISAs to continue beyond 2010 (already announced) What has Brown achieved? The Budget: What we know class="" href="/1/hi/uk_politics/6473883.stm">A launch pad for No 10?
The BBC's political editor Nick Robinson said he had been told Wednesday's measures would include a big boost to education spending, changes to both the corporate and personal tax systems and a promise to be more efficient. BBC political editor Nick Robinson said Mr Brown would not want his last Budget "to go with a whimper".
The Guardian reports that he will pledge an extra £1bn to boost the fight to reduce child poverty. Business groups have urged him not to introduce more company taxes. But consultants Ernst & Young believe he is unlikely to introduce any business tax cuts, despite calls from groups such as the CBI.
Business groups have urged Mr Brown not to introduce more company taxes. But consultants Ernst & Young believe he is unlikely to introduce any business tax cuts, despite calls from groups such as the CBI.
The chancellor may tighten the rules on inheritance tax and with property prices continuing to rise, he may act on the issue of stamp duty - currently charged on properties priced above £125,000.The chancellor may tighten the rules on inheritance tax and with property prices continuing to rise, he may act on the issue of stamp duty - currently charged on properties priced above £125,000.
He has already doubled air passenger duty on flights, but was criticised for bringing it in on 1 February, which annoyed some passengers who had booked flights before it was raised.He has already doubled air passenger duty on flights, but was criticised for bringing it in on 1 February, which annoyed some passengers who had booked flights before it was raised.
Shadow chancellor George Osborne told BBC One's Breakfast: "The overall impact for people is that they are much more over-taxed than when Gordon Brown entered the Treasury. That's just a fact.
"He has been in charge over the last decade and has been responsible for the problems we seen in our society, in our health service and in our education system."
In last year's Budget Mr Brown promised to raise spending per head on state school children to levels enjoyed by private school pupils.In last year's Budget Mr Brown promised to raise spending per head on state school children to levels enjoyed by private school pupils.
Council taxCouncil tax
He has already pledged a £36bn boost for schools and colleges in the upcoming three-year spending review, to be announced later this year, but may announce further details on Wednesday.He has already pledged a £36bn boost for schools and colleges in the upcoming three-year spending review, to be announced later this year, but may announce further details on Wednesday.
And he will announce the results of the Lyons review, set up in 2004, which is expected to recommend two new council tax bands - at the top and bottom ends of the spectrum - but only when all homes have been revalued. Mr Blair has said he will step down by September, and is expected to announce his resignation shortly after the Scottish and Welsh elections on 3 May - and Mr Brown is overwhelming favourite to succeed him.
Wednesday is expected to be the chancellor's final budget - if he takes over from Tony Blair, as expected, within the next few months.
Mr Blair has said he will step down by September, and is expected to announce his resignation shortly after the Scottish and Welsh elections on 3 May.
He's strong minded, he knows his own mind, he's dedicated. He knows what he wants. Alan Johnson on Gordon Brown
Only two other candidates - Michael Meacher and John McDonnell - have declared their intention to stand against Mr Brown, but they each need the signatures of 44 other Labour MPs to do so.Only two other candidates - Michael Meacher and John McDonnell - have declared their intention to stand against Mr Brown, but they each need the signatures of 44 other Labour MPs to do so.
On Tuesday, Labour's ruling National Executive Committee confirmed that Mr Brown would not have to go through an "affirmation ballot" if he was the only candidate. On Tuesday, Labour's ruling National Executive Committee confirmed Mr Brown would not have to go through an "affirmation ballot" if he was the only candidate.
But he would be expected to attend hustings around the UK, it said. But he would be expected to attend hustings around the UK.
Meanwhile senior ministers and deputy leadership hopefuls rallied around Mr Brown on Tuesday, following the publication of a Financial Times interview with the former head of the civil service. Meanwhile senior ministers and deputy leadership hopefuls rallied around Mr Brown on Tuesday, following the publication of a Financial Times interview with the former head of the civil service, who accused the chancellor of "Stalinist ruthlessness".
Lord Turnbull, who was also Mr Brown's permanent secretary at the Treasury for four years, said of his discussions with Cabinet colleagues: "His view is that it is just not worth it and 'they will get what I decide'."Lord Turnbull, who was also Mr Brown's permanent secretary at the Treasury for four years, said of his discussions with Cabinet colleagues: "His view is that it is just not worth it and 'they will get what I decide'."
Education Secretary Alan Johnson was among those defending Mr Brown. He said: "Sure, he's strong minded, he knows his own mind, he's dedicated. He knows what he wants. Education Secretary Alan Johnson defended Mr Brown, saying: "Sure, he's strong minded, he knows his own mind, he's dedicated. He knows what he wants.
"If you can't hack it with someone like that, if your arguments aren't good enough, then that's your problem, not his.""If you can't hack it with someone like that, if your arguments aren't good enough, then that's your problem, not his."