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Brown delivering 'final' Budget Brown hails UK economic strength
(10 minutes later)
Gordon Brown has begun delivering his eleventh Budget speech in the Commons - expected to be his last as chancellor. Chancellor Gordon Brown has hailed the longest period of economic growth in Britain's history as he delivers his eleventh Budget speech in the Commons.
He will focus on the environment and education - setting out the key themes of his premiership should he succeed Tony Blair later this year. He said his 11th Budget, expected to be his last, was one for "prosperity and fairness for Britain's families".
There have been reports he may unveil changes to personal and corporation tax and pledge £1bn to fight child poverty. He said inflation would fall to 2% and continue falling while growth in 2008 and 2009 would be between 2.5% to 3%.
Mr Brown, who is expected to take over from Tony Blair this year, will focus on education and the environment.
He will seek to regain the initiative after a senior civil servant accused him of "Stalinist ruthlessness".He will seek to regain the initiative after a senior civil servant accused him of "Stalinist ruthlessness".
Mr Brown was reported to be "incandescent" with rage after the criticism from former head of the civil service, Lord Turnbull on Tuesday.Mr Brown was reported to be "incandescent" with rage after the criticism from former head of the civil service, Lord Turnbull on Tuesday.
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) The Budget: What we know Read our Budget blogBUDGET 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) The Budget: What we know Read our Budget blog
The Budget comes after a week which has also seen an increase in inflation and poor opinion polls for Labour.The Budget comes after a week which has also seen an increase in inflation and poor opinion polls for Labour.
There is speculation he will unveil a cut in business taxes and unveil extra help for pensioners to pay council tax bills.There is speculation he will unveil a cut in business taxes and unveil extra help for pensioners to pay council tax bills.
But education is likely to be the main winner, with extra cash to help fulfil Mr Brown's ambition of closing the gap on spending per pupil between state and private schools.But education is likely to be the main winner, with extra cash to help fulfil Mr Brown's ambition of closing the gap on spending per pupil between state and private schools.
According to The Guardian, Mr Brown will also unveil an extra £1bn in tax credits to alleviate child poverty.According to The Guardian, Mr Brown will also unveil an extra £1bn in tax credits to alleviate child poverty.
There could also be tax breaks for homes which use solar panels and wind turbines and a doubling of road tax to £400 a year for the most polluting vehicles.There could also be tax breaks for homes which use solar panels and wind turbines and a doubling of road tax to £400 a year for the most polluting vehicles.
HAVE YOUR SAY Whatever happens, one thing will be the same: The UK is becoming far too expensive to live in. Ali, Machynlleth Send us your comments What has Brown achieved?HAVE YOUR SAY Whatever happens, one thing will be the same: The UK is becoming far too expensive to live in. Ali, Machynlleth Send us your comments What has Brown achieved?
The chancellor may also tighten the rules on inheritance tax and with property prices continuing to rise and act on the issue of stamp duty - currently charged on properties priced above £125,000.The chancellor may also tighten the rules on inheritance tax and with property prices continuing to rise and act on the issue of stamp duty - currently charged on properties priced above £125,000.
It is expected to be the chancellor's final budget - if he takes over from Tony Blair, as expected, within the next few months.It 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.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.