This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/uk-politics-21850011

The article has changed 19 times. There is an RSS feed of changes available.

Version 11 Version 12
Budget 2013: George Osborne halves growth forecast Budget 2013: George Osborne halves growth forecast but insists plan is working
(35 minutes later)
Chancellor George Osborne has cut his official growth forecast in half, but insisted the UK would avoid a "triple dip" recession. Chancellor George Osborne has insisted his economic medicine is working, despite being forced to slash growth forecasts for the UK in his Budget.
He said growth in 2013 would be 0.6% - half the 1.2% he predicted four months ago in his autumn statement. In a package of measures aimed at "those who want to work and get on" he cut corporation tax to 20% and cancelled a planned fuel duty rise.
He used his Budget to cut corporation tax by 1% to 20%, and cancelled this autumn's planned fuel duty rise. He also cancelled alcohol duty rises and cut the price of beer by 1p a pint.
He also scrapped above inflation alcohol duty rises and cut the price of a pint of beer by 1p. But Labour leader Ed Miliband attacked it as a "more of the same Budget from a downgraded chancellor".
Mr Osborne said his Budget was for "those who want to work and get on". Battling interruptions in a rowdy House of Commons, Mr Osborne said he wanted to "level" with people about "hard decisions" that had to be taken.
He said it was taking longer than expected but "we are, slowly but surely, fixing our country's economic problems". He said that although it was taking longer than expected "we are, slowly but surely, fixing our country's economic problems".
He began his Budget statement by telling MPs in a packed House of Commons: "Today, I'm going to level with people about the difficult economic circumstances we still face and the hard decisions required to deal with them." He unveiled a raft of gloomy economic forecasts, saying growth in 2013 would be 0.6% - half the 1.2% he predicted four months ago in his autumn statement.
Mr Osborne faced frequent interruptions in a rowdy House of Commons, with the deputy speaker forced to intervene to ask for quiet. 'Tough decisions'
His revised forecast is for the UK's national debt to rise to 85% of GDP and not start coming down until 2017/18 - a year later than previously predicted.His revised forecast is for the UK's national debt to rise to 85% of GDP and not start coming down until 2017/18 - a year later than previously predicted.
But the chancellor predicted the deficit would continue to come down thanks to the "many tough decisions" taken by the government. But he said the country would avoid a "triple dip" recession and predicted the deficit would continue to come down thanks to the "many tough decisions" taken by the government.
He said the deficit had fallen from 11.2% of GDP in 2009-10, to a forecast of 7.4% this year - a fall of a third. He also managed to find cash from a new squeeze on public spending, extending a public sector pay freeze and other measures for some modest giveaways.
He announced that the Bank of England Monetary Policy Committee had also been given an updated broader remit, but keeps its 2% inflation target. In moves aimed at helping "hard working" people on low incomes, he will introduce a £10,000 income tax threshold a year early, in 2014 - in a move that pleased the Lib Dems, who campaigned on the issue at the last election.
The chancellor extended the 1% public sector pay cap by one year to 2015/16. Small businesses will get a £2,000 allowance for firms before paying employer National Insurance contributions, a move Mr Osborne described as "taking tax off jobs".
He unveiled a raft of measures aimed at boosting new businesses, including tax credits for research, and new measures to clamp down on tax avoidance. And he cut corporation tax from 21% to 20%, merging the small company and main rate.
And he announced plans to extend shared-equity schemes to help people get on the housing ladder and plans to encourage more "affordable" homes to be built. He also brought cheer to Tory backbenchers campaigning to save the pub trade by scrapping the alcohol tax escalator, where prices increased at 2% above inflation every year, and announced a 1p cut in the price of a pint of beer.
And he unveiled measures aimed at helping home-buyers including an extension of shared equity schemes.
He also announced that the Bank of England Monetary Policy Committee had been given an updated broader remit, but keeps its 2% inflation target.
Mr Osborne has resisted Labour calls to change economic course despite the threat of a dip back into recession and the loss of the UK's triple A credit rating, insisting the economy was on the right track.Mr Osborne has resisted Labour calls to change economic course despite the threat of a dip back into recession and the loss of the UK's triple A credit rating, insisting the economy was on the right track.
And he ignored calls by Lib Dem Business Secretary Vince Cable to borrow more to boost growth with a big building programme.And he ignored calls by Lib Dem Business Secretary Vince Cable to borrow more to boost growth with a big building programme.
Deficit 'Pain'
But he did announce £2.5bn of spending on infrastructure paid for by a further squeeze on public spending. Details of where the axe will fall will come in June when the government unveils its spending review. But he did announce £2.5bn of spending on infrastructure. Details of where the spending cuts that will pay for it will come will be announced in June when the government unveils its spending review.
In an attempt to show he is on the side of "hard working voters", he speeded up progress towards a £10,000 tax free personal allowance.
The chancellor's financial statement comes against a backdrop of grim economic news, with unemployment climbing by 7,000 to 2.52 million between November and January, according to official figures.The chancellor's financial statement comes against a backdrop of grim economic news, with unemployment climbing by 7,000 to 2.52 million between November and January, according to official figures.
Ahead of the speech Labour leader Ed Miliband accused Mr Osborne of presiding over a "failing" economic plan and urged him to change course. Labour leader Ed Miliband told MPs Mr Osborne's message had not changed since the coalition had come to power, that voters would suffer four years of tax rises and spending cuts before "good times" returned.
"The government is borrowing over £200bn more than he had planned," added Mr Miliband. "Three years on, what does he say? Exactly what he said three years ago.
"Why? Because it's paying for failure, its failure to get growth moving. And it's also making Britain's families pay for that failure." "We still need four more years of pain, tax rises and spending cuts. In other words, after all the misery, all the harsh medicine, all the suffering by the British people, three years, no progress, deal broken."
The Labour leader said the Office for Budgetary Responsibility had confirmed living standards would fall over the course of the Parliament, meaning families would be worse off in 2015 than they had been in 2010.
And he mocked the chancellor to make any reference to Britain's loss of its Triple A rating with credit agencies during his hour long budget speech.
He also asked the chancellor how details of the Budget came to be published via a tweet from the Evening Standard before the speech had been delivered.
Ahead of the Budget the government announced plans for some parents in the UK to be able to claim back up to £1,200 a year for each child - or 20% of childcare costs - from 2015.Ahead of the Budget the government announced plans for some parents in the UK to be able to claim back up to £1,200 a year for each child - or 20% of childcare costs - from 2015.
Mr Cameron said the plans, expected to cost £1.4bn, would be a "boost direct to the pockets of hard-working families" but it has been criticised in sections of the press for penalising stay-at-home parents.Mr Cameron said the plans, expected to cost £1.4bn, would be a "boost direct to the pockets of hard-working families" but it has been criticised in sections of the press for penalising stay-at-home parents.
Meanwhile, members of the UK's largest civil service union, the Public and Commercial Services Union, are staging a 24-hour strike on Wednesday in a dispute over pay, pensions and working conditions.Meanwhile, members of the UK's largest civil service union, the Public and Commercial Services Union, are staging a 24-hour strike on Wednesday in a dispute over pay, pensions and working conditions.
Government departments, driving test centres, museums and job centres are among workplaces expected to be hit while meetings at the Welsh assembly have been rearranged because Labour and Plaid Cymru members will not cross a picket line.Government departments, driving test centres, museums and job centres are among workplaces expected to be hit while meetings at the Welsh assembly have been rearranged because Labour and Plaid Cymru members will not cross a picket line.
A rally was being held at Westminster while Mr Osborne delivered his Budget.A rally was being held at Westminster while Mr Osborne delivered his Budget.