Stability is the aim of Budget 2008

Summary

'Budget 2008 - Stability and Opportunity: Building a Strong, Sustainable Future' (HC 388) sets out the Government's plans for taxation, public spending and economic growth for the coming year.

The Government reports that the economy is stable and resilient, continuing to grow, and that its strict fiscal rules are being met.

Measures included in the Budget 2008:

Further financial support to move 250,000 children out of poverty.
An additional one-off payment for over-80s and over-60s households alongside the Winter Fuel Payment.
Increased support and access to finance for small firms.
A £200 million package to support and bring forward by one year the GCSE targets.
Postponement of the planned April 2008 fuel duty increase of 2 pence per-litre until October 2008.
An increase in alcohol duty rates by 6% from 17 March 2008.
Laying the groundwork for the introduction of five-year carbon budgets (the first of which will be included in Budget 2009).
Further reforms to modernise the tax system and a number of measures to combat tax fraud and avoidance.
Further steps to tackle climate change, including:
- reforms to Vehicle Excise Duty;
- auctioning of 100% of allowances for large electricity producers in Phase III of the EU Emissions Trading Scheme; and
- to eliminate single use carrier bags the Government will legislate and impose a charge if retailers do not take voluntary action.

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Law-Making Explained

This is a House of Commons Paper (HC 388, 2007-08): it is a Report from HM Treasury.

Find out more about House of Commons papers.

How does it affect me?

If you are affected by any of the measures announced in the Budget 2008 or are interested in public spending issues, this affects you.

Conservative Leader David Cameron described Alistair Darling's first Budget as a 'bad news budget'. He said, "High debt. High interest rates. High taxes. And now lower growth. Those are the facts that this Budget cannot hide. They tell the story of just how badly prepared we are for the downturn. And we all know why. In the years of plenty Labour put nothing aside. They didn't fix the roof when the sun was shining."

Liberal Democrat leader Nick Clegg also criticised the Chancellor's measures, saying, "This is not a green budget. This is not a people's budget. This is a con trick budget that protects the rich and abandons the poor. The Government has bottled it on green taxes and failed to implement the necessary measures to cut child poverty."