The key points of George Osborne's fourth Budget.
Budget 2013 : full coverage Budget 2013: live
= Preamble =
"This is a budget for people who aspire to work hard and get on ," says Osborne.
He describes it as a budget for people who realise there are no easy answers .
Osborne says we have cut the deficit by a third, not a quarter .
= Economy =
Office for Budgetary Resopnsibility forecasts show GDP growth of 0.6pc this year and 1.8pc growth next year, with 2.3pc growth in 2015.
That compares with 1.2pc, 2pc and 2.3pc in the Autumn Statement.
The OBR predicts that the deficit will stand at 7.4pc in 2012/13 . It will fall to 5.4pc in 2014-15.
Net debt as a share of GDP will peak in 2016/17 , the OBR forecasts. That is a year later than forecast in the Autumn Statement.
Public sector net debt will be 75.9pc of GDP this year, according to the OBR, then 79.2pc, 82.6pc, 85.1pc, 85.6pc in following years before falling to 84.8pc in 2017/18.
The OBR predicts that there will be 600,000 more jobs created this year and 60,000 fewer people claiming jobless benefits.
= Bank of England =
Osborne said the Bank of England may need to use unconventional monetary policy instruments .
The Bank will still target inflation at, or around 2pc .
However, it will be asked to explain in greater detail the trade-offs it has made when taking decisions to ensure better communication between the Bank and Treasury.
If the inflation target is missed, the Bank's governor will still write a letter to the Chancellor , but not until the day when the minutes of that month's interest rate meeting are published.
Currently, the letter is written on the day of the decision.
= Spending and saving =
The Government will seek to make £11.5bn of savings in the next spending round versus a previous target of £10bn.
But, school and health budgets will be protected .
Public sector pay rises will be limited to 1pc a year in 2015/16.
But, the armed forces will get a pay rise of 0.5pc from May 1 and more money from fines relating to the Libor scandal will go to military causes.
= Infrastructure and industry =
Whitehall cuts will be used to boost infrastructure spending by £3bn a year from 2015/16 .
Support will be provided for energy intensive industries.
Osborne introduced a "generous" new tax regime to promote early investment in shale gas .
The Government intends to progress two major carbon capture and storage projects .
Package of measures introduced to reverse decline in asset management industry.
The Government is abolishing stamp duties on shares on growth markets such as AIM .
The main rate of corporation tax is being reduced by another 1pc.
The UK will have a 20pc rate of corporation tax from April 2015.
This will be offset by increasing the bank levy to 0.142pc.
= Taxes and welfare =
A large new package of measures on tax avoidance and evasion to bring in £3bn in unpaid taxes is being introduced.
The Capital Gains Tax holiday is to be extended.
Personal allowance is to be raised to £10,000 by next year - one year earlier than planned.
= Support for families =
Tax free childcare vouchers worth £1,200 per child are to be introduced, along with increased support for families with children on universal credit.
The flat rate pension worth £144 a week is to be brought forward to 2016.
A cap on social care costs is to come in during 2017 and protect savings above £72,000.
Support for Equitable Life policy holders is extended to those who bought with-profits annuities before 1992, with payments of £5,000 and an extra £5,000 for those on lowest incomes.
= Help for home buyers =
Under the Help to Buy scheme, the Government will commit £3.5bn of capital spending over next three years to shared equity loans .
It will offer equity loans worth up to 20pc on a new build home for anybody looking to move up the housing ladder.
A new mortgage guarantee , sufficient to support £130bn worth of loans, will be introduced to help people who cannot afford a big deposit.
= Fuel duty =
September's 3p rise in fuel duty has been cancelled .
= Alcohol duty =
The Government is maintaining the planned rise for all alcohol duty, with the exception of beer and beer duty is being cut by 1p . "We're taking a penny off the pint," said Osborne.
= Promoting jobs =
Osborne is creating the employment allowance, which will reduce every business' National Insurance payroll taxes by £2,000 .
The Chancellor described the move as "taking tax off jobs".