Budget 2006 : a strong and strengthening economy, investing in Britains future, economic and fiscal strategy report and financial statement and budget report, March 2006

"The Budget" sets out the Government's plans for taxation, public spending and economic growth for the coming year.

Details announced include: an annual growth rate of 2.5 per cent for 2006-07 with a forecast of 2.75 to 3.25 per cent for 2007-08; an inflation rate of two per cent this year; and public sector borrowing on course for a GBP 16bn surplus over the economic cycle ending in 2010-11, with net borrowing set at GBP 37 billion for this year and GBP 36 billion next year, falling to GBP 23 billion in the year to 2010-11.

Measures announced in the 2006 Budget include: the climate change levy to be indexed in line with inflation from 2007, a new vehicle excise duty rate of GBP 210 for the least fuel efficient cars (4X4 cars or SUVs) and the establishment of a new GBP 1bn energy and environmental research institute funded by government and private industry; measures to help to single parents into work and tackle child poverty including an increase in the child tax credit, childcare vouchers and a top-up to child trust fund accounts at the age of seven; and an increase in duty of nine pence on cigarettes and one pence on beer, with a freeze in duty on whisky and other spirits. It also includes: the exemption on stamp duty raised to GBP 125,000 and a rise in the level of inheritance tax from GBP 275,000 to GBP 325,000; the level of investment in schools to rise from GBP 5.6 billion to GBP 8 billion a year; free of peak national bus travel for pensioners in every part of the country; and funding, in partnership with commercial sponsorship, to support top athletes to prepare for the 2012 Olympics.